Vonage Holdings ups spread on $200 million loan to Libor plus 800 bps

By Sara Rosenberg

New York, Dec. 9 - Vonage Holdings Corp. increased pricing on its $200 million senior secured term loan (B2/BB) to Libor plus 800 basis points from Libor plus 750 bps and firmed the original issue discount at 97, the wide end of the 97 to 98 talk, according to a market source.

As before, the loan has a 1.75% Libor floor and 101 soft call protection for one year.

Bank of America, Deutsche Bank and Citigroup are the lead banks on the deal.

Amortization on the term loan is 10% per year.

Covenants include total leverage, interest costs and capital expenditures.

Proceeds from the term loan, along with cash on hand, will be used to refinance existing term loans totaling $194 million.

Closing is expected to occur prior to Dec. 31.

Vonage is a Holmdel, N.J.-based provider of communications services connecting individuals and social networks through broadband devices.

© 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.