January expected to be busy month for primary leveraged loan market; Digital River on tap

By Sara Rosenberg

New York, Jan. 2 – The start to the new year was quiet in the loan market, but market participants are expecting activity to pick up dramatically in the new issue market within the next two weeks, according to a market source.

So far, the January calendar only includes Digital River Inc.’s senior secured credit facility, with the bank meeting for the transaction expected in mid-January.

And, although leads have yet to disclose expected timing on the Advisory Board Co., IPC Systems Inc. and Dynacast International deals, closing on these transactions are targeted for the January/February timeframe, making it likely that they will come to market soon.

Based on a recent filing with the Securities and Exchange Commission Digital River’s credit facility is anticipated to be sized at $345 million, split between a $10 million revolver, a $255 million first-lien term loan and an $80 million second-lien term loan.

Sources previously told Prospect News that the second-lien debt was pre-sold.

Macquarie Capital (USA) Inc. is leading the deal that will be with up to $328.9 million of equity used to fund the buyout of the company by Siris Capital Group LLC for $26.00 per share in cash, or about $840 million.

Closing is expected in the first quarter, subject to customary conditions, including the receipt of shareholder approval and the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act.

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