By Paul A. Harris
Portland, Ore., Sept. 25 Interoute launched and priced a resized 590 million two-part offering of five-year senior secured notes (B1/B+) on Friday, according to a market source.
The London-based information technology company priced an upsized 240 million tranche of floating-rate notes at par to yield Euribor plus 625 bps.
Interoute also priced a downsized 350 million tranche of fixed-rate notes at par to yield 7 3/8%.
The transaction saw 25 million of proceeds shifted to the floating-rate tranche from the fixed-rate tranche.
Timing was moved ahead, as the original timetable had the roadshow running into the week ahead.
Credit Suisse was the left bookrunner. Barclays and Morgan Stanley were joint bookrunners.
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 Interoutes outstanding term loan and revolver, and put cash on the balance sheet.
| Issuer: | Interoute
|
| Amount: | 590 million
|
| Tenor: | Five years
|
| Securities: | Senior secured notes
|
| Left bookrunner: | Credit Suisse
|
| Joint bookrunners: | Barclays, Morgan Stanley
|
| Trade date: | Sept. 24
|
| Ratings: | Moody's: B1
|
| Standard & Poor's: B+
|
| Marketing: | Roadshow
|
|
|
| Floating-rate notes
|
| Amount: | 240 million, upsized from 215 million
|
| Coupon: | Euribor plus 625 bps
|
| Price: | Par
|
| Yield: | Euribor plus 625 bps
|
| Call protection: | One year
|
|
|
| Fixed-rate notes
|
| Amount: | 350 million, downsized from 375 million
|
| Coupon: | 7 3/8%
|
| Price: | Par
|
| Yield: | 7 3/8%
|
| Call protection: | Two years
|
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