ViaWest trims add-on term loan B to $80 million, raises pricing

By Sara Rosenberg

New York, Dec. 11 – ViaWest Inc. downsized its add-on term loan B to $80 million from $170 million and increased pricing to Libor plus 400 basis points from Libor plus 350 bps, according to a market source.

Also, the 101 soft call protection on the loan was extended to one year from six months, the source said.

The add-on term loan B still has a 1% Libor floor and an original issue discount of 99.

Pricing on the existing term loan is unchanged at Libor plus 350 bps with a 1% Libor floor.

RBC Capital Markets, TD Securities (USA) LLC and Citigroup Global Markets Inc. are the lead banks on the deal, with TD Securities the administrative agent.

Proceeds will be used to fund the acquisition of INetU Inc. from BV Investment Partners and other shareholders for $162.5 million.

In connection with the add-on term loan B downsizing, the company is upsizing its revolver by $30 million to $115 million from $85 million, and $50 million in additional equity is being invested by parent company Shaw Communications Inc.

Closing is expected by year-end, subject to customary conditions.

Total net leverage is 4.6 times, reduced from 5 times under the original structure, the source added.

ViaWest is a Greenwood Village, Colo.-based IT infrastructure solutions company. INetU is an Allentown, Pa.-based customer-centric cloud company.

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