Interoute shifts proceeds to floaters, launches €590 million two-part secured notes; pricing Friday

By Paul A. Harris

Portland, Ore., Sept. 25 – Interoute shifted proceeds to its floating-rate notes tranche as it launched its resized €590 million two-part offering of secured notes (B1/B+) on Friday, according to a market source.

The London-based information communication technology company upsized its tranche of five-year floating-rate notes to €240 million from €215 million and launched it a Euribor plus 625 basis points.

Meanwhile Interoute downsized its five-year fixed-rate notes tranche to €350 million from €375 million and launched it at 7 3/8%.

The deal is expected to price Friday.

Timing was moved ahead, as the original timetable had the roadshow running into the week ahead.

Credit Suisse is the left bookrunner. Barclays and Morgan Stanley are joint bookrunners.

The floating-rate notes come with one year of call protection, and the fixed-rate notes come with two years of call protection.

Proceeds, along with a €75 million equity contribution, will be used to finance the acquisition of European managed services provider Easynet and repay Easynet debt, repay Interoute’s outstanding term loan and revolver, and put cash on the balance sheet.

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