Datapipe reveals talk on $365 million credit facility with launch

By Sara Rosenberg

New York, April 2 - Datapipe Inc. released price talk on its $365 million senior secured credit facility in connection with its lender call on Wednesday, according to a market source.

The $55 million four-year first-lien revolver, which includes a $15 million add-on, is talked at Libor plus 350 basis points to 375 bps with no Libor floor, an original issue discount of 99¼ on the add-on and a par offer price on the existing debt, the source said.

The $225 million five-year first-lien term loan, which includes a $25 million add-on, is talked at Libor plus 375 bps to 400 bps with a 1% Libor floor, an original issue discount of 99½ on the add-on and a par offer price on the existing amount.

And, the $85 million 51/2-year second-lien term loan is talked at Libor plus 675 bps to 700 bps with a 1% Libor floor and a par offer price, the source continued.

Included in the first-lien term loan is 101 soft call protection for six months, and the second-lien term loan has 101 hard call protection for one year.

Commitments are due on April 9, the source added.

Morgan Stanley Senior Funding Inc. and TD Securities (USA) LLC are the lead banks on the deal.

Proceeds will be used to refinance revolver borrowings, to reprice the existing first-lien term loan B and second-lien term loan and for general corporate purposes.

Closing is expected on April 11.

Datapipe is a Jersey City, N.J.-based company that offers IT services.

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