IPC Systems first- and second-lien term loan price talk emerges

By Sara Rosenberg

New York, April 17 - IPC Systems Inc. is shopping its $525 million 61/2-year first-lien term loan (B1/B-) at talk of Libor plus 450 basis points to 475 bps with a 1% Libor floor and an original issue discount of 99½ and its $350 million seven-year second-lien term loan (Caa2/CCC+) at talk of Libor plus 850 bps with a 1% Libor floor and a discount of 97 to 98, according to a market source.

Included in the first-lien term loan is 101 soft call protection for six months, and the second-lien term loan is non-callable for one year, then at 103 in year two and 101 in year three, the source said.

The company's $900 million credit facility also provides for a $25 million revolver (B1/B-).

Goldman Sachs Bank USA, J.P. Morgan Securities LLC, Barclays and Citigroup Global Markets Inc. are the lead banks on the deal that launched with a bank meeting on Wednesday.

Proceeds will be used to refinance existing debt.

Commitments are due on April 29, the source added.

IPC is a Jersey City, N.J.-based provider of specialized voice and data communications and trading collaboration services for the financial markets.

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