Fusion discloses talk on first-, second-lien term loans with launch

By Sara Rosenberg

New York, Feb. 15 – Fusion released price talk on its $500 million seven-year first-lien term loan (B3) and $70 million 7.5-year second-lien term loan (Caa2) in connection with its bank meeting on Thursday, according to a market source.

The first-lien term loan is talked at Libor plus 675 basis points to 725 bps with a 1% Libor floor and an original issue discount of 98.5 to 99, and the second-lien term loan is talked at Libor plus 1,150 bps with a 1% Libor floor and a discount of 97.75, the source said.

The first-lien term loan has 101 soft call protection for six months, and the second-lien term loan is non-callable for a period that is to be announced with step-downs to be announced.

Amortization on the first-lien term loan is 2.5% per annum and the second-lien term loan has no amortization.

The company’s $620 million of senior secured credit facilities also include a $50 million revolver (B3).

Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc. and MUFG are the leads on the deal.

Commitments are due on Feb. 28, the source added.

Proceeds will be used to refinance debt in connection with the all-stock merger of Fusion and the Cloud and Business Services customers, operations and infrastructure of Birch Communications.

Fusion is a New York-based cloud services provider.

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