Datapipe ups add-on first-lien loan to $32.5 million, sets prices

By Sara Rosenberg

New York, Aug. 14 – Datapipe Inc. upsized its add-on first-lien term loan B due March 15, 2019 to $32.5 million from $30 million and firmed the original issue discount at 98, the wide end of the 98 to 98˝ talk, according to a market source.

Also, the offer price on the $30 million add-on second-lien term loan due Sept. 15, 2019 was set at 98, the tight end of the 97˝ to 98 talk, the source said.

Pricing on the add-on first-lien term loan is Libor plus 425 basis points with a 1% Libor floor, and pricing on the add-on second-lien term loan is Libor plus 750 bps with a 1% Libor floor, in line with the company’s existing first- and second-lien term loans.

The first-lien term loan has 101 soft call protection through Oct. 16, and the second-lien term loan has hard call protection of 101 through March 15, 2015.

Financial covenants include maximum total leverage and minimum interest coverage ratios.

Morgan Stanley Senior Funding Inc., TD Securities (USA) LLC and Jefferies Finance LLC are the lead banks on the $62.5 million of fungible add-on senior secured term loans.

Proceeds will be used to fund the acquisition of Layered Tech and for general corporate purposes.

Closing is expected on Monday, the source added.

Datapipe is a Jersey City, N.J.-based company that offers IT services.

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