Masergy firms $369 million first-lien term debt at Libor plus 325 bps

By Sara Rosenberg

New York, Feb. 16 – Masergy Communications Inc. set pricing on its fungible $25 million add-on first-lien term loan (B2/B) due December 2023 and repriced $344 million (B2/B) senior secured first-lien term loan due December 2023 at Libor plus 325 basis points, the low end of the Libor plus 325 bps to 350 bps talk, according to a market source.

Also, the Libor floor on the first-lien term loan debt was revised to 1% from 0%, the source said.

As before, the first-lien term loan debt has a par issue price and 101 soft call protection for six months.

Jefferies LLC and Antares Capital are the leads on the deal.

Proceeds from the add-on loan will be used to repay $20 million of the second-lien term loan to bring the balance to $120 million from $140 million currently and for fees, expenses and accrued interest in connection with the transaction.

The first-lien term loan repricing will take the existing loan down from Libor plus 375 bps with a 1% Libor floor.

Masergy is a Plano, Texas-based provider of hybrid networking, managed security and cloud communications solutions.

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