TierPoint wraps $140 million in add-on first- and second-lien loans

By Sara Rosenberg

New York, March 29 – TierPoint allocated its $140 million in add-on term loans on Tuesday, according to a market source.

The debt consists of a $100 million add-on first-lien term loan (B2) priced at Libor plus 450 basis points with a 1% Libor floor and an original issue discount of 98 and a $40 million add-on second-lien term loan (Caa2) priced at Libor plus 875 bps with a 1% Libor floor and a discount of 96.5, the source said.

The add-on term loans are fungible with the loans TierPoint syndicated in December 2015.

As a result of the original issue discount on the add-on second-lien term loan, the MFN on an existing $90 million second-lien term loan obtained in 2014 was triggered, resulting in pricing on that tranche increasing to Libor plus 887.5 bps with a 1% Libor floor.

RBC Capital Markets is the lead on the deal.

Proceeds will be used to help fund the acquisition of Cosentry, an Omaha-based provider of cloud, colocation and managed services.

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.