Intermedia.net reveals OID talk on first- and second-lien term loans

By Sara Rosenberg

New York, Nov. 17 – Intermedia.net Inc. came out with original issue discount talk on its $190 million seven-year first-lien term loan (B1/B+) and $70 million eight-year second-lien term loan (Caa1/CCC+) in connection with its bank meeting, according to a market source.

The first-lien term loan is talked with an original issue discount of 99 and the second-lien term loan is talked with a discount of 98, the source said.

As previously reported, price talk on the first-lien term loan is Libor plus 475 basis points with a 1% Libor floor, and talk on the second-lien term loan is Libor plus 925 bps with a 1% Libor floor.

The first-lien term loan has 101 soft call protection for six months, and the second-lien term loan has call protection of 102 in year one and 101 in year two.

The company’s $285 million credit facility also includes a $25 million five-year revolver (B1/B+).

SunTrust Robinson Humphrey Inc. and TD Securities (USA) LLC are the leads on the deal.

Commitments are due on Dec. 6, the source added.

Proceeds will be used to help fund the buyout of the company by Madison Dearborn Partners from Oak Hill Capital Partners.

Closing is expected this year, subject to regulatory approvals and other customary conditions.

Intermedia.net is a Mountain View, Calif.-based provider of cloud business applications.

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