Syniverse ups spread on $1.03 billion term loan to SOFR plus 700 bps

By Sara Rosenberg

New York, May 6 – Syniverse Holdings LLC increased pricing on its $1.025 billion seven-year term loan B (B3/B-) to SOFR plus 700 basis points from talk in the range of SOFR plus 500 bps to 525 bps, according to a market source.

Also, the original issue discount on the term loan was changed to 96 from 97, the source said.

In addition, the preferred dividend restricted payment carve-out was revised to up to 4.85x first-lien net leverage from up to 6x total net leverage, an available amount leverage governor was added requiring an ability to incur $1 of ratio debt, and the free and clear was modified to the greater of $165 million and 75% of EBITDA from the greater of $242 million and 100% of EBITDA.

The term loan still has a 0.5% floor, no CSA, 101 soft call protection for six months, and an ESG step-down of 7.5 bps subject to an outlined key performance indicator that steps back up by 7.5 bps if the company fails to meet the KPI metric.

Barclays, Goldman Sachs Bank USA, Mizuho, BofA Securities Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., BNP Paribas Securities Corp. and Societe Generale are the joint bookrunners on the deal. Barclays is the administrative agent.

Commitments were scheduled to be due at 2 p.m. ET on Friday, the source added.

Proceeds will be used with $340 million of preferred equity, upsized from $315 million, and an equity investment from Twilio Inc. to refinance the company’s existing capital structure.

The Carlyle Group will maintain its majority interest in Syniverse.

Closing is expected in Syniverse’s fiscal second-quarter 2022.

Syniverse is a Tampa, Fla.-based provider of technology and business services for the telecommunications industry.

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