TierPoint expected to launch $310 million of term loans in November

By Sara Rosenberg

New York, Oct. 30 – TierPoint is considering using $310 million of incremental term loan debt to help fund its acquisition of Windstream’s data center business for $575 million, according to a market source.

A launch for the incremental loans is anticipated to occur in mid-to-late November, the source said.

RBC Capital Markets and Credit Suisse Securities (USA) LLC are the lead banks on the deal.

The incremental debt is expected to consist of a $220 million first-lien term loan and a $90 million second-lien term loan, the source continued.

Other funds for the transaction will come from equity.

Recently, TierPoint received approval of an amendment to its existing credit facility, allowing for the incremental debt and revising covenants, the source added.

Lenders were offered a 37.5 bps amendment fee.

RBC led the amendment.

TierPoint is a St. Louis-based provider of cloud, colocation and managed services designed to help organizations improve business performance and manage risk.

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