Syniverse Said to Increase Acquisition Term Loan to $700 Million

Syniverse Holdings Inc., the provider of wireless services owned by Carlyle Group, increased a covenant-lite loan backing its acquisition of Mach by $75 million to $700 million, according to a person with knowledge of the transaction.

The delayed-draw debt, maturing in April 2019, will now pay interest at 3 percentage points more than the London interbank offered rate, down from 3.25 percentage points, said the person, who asked not to be identified because the information is private. Libor, a rate banks say they can borrow in dollars from each other, will have a 1 percent floor.

Syniverse is proposing to sell the loan at 99.5 cents on the dollar, the person said, reducing proceeds for the company and boosting the yield to investors.

Investors will be paid a ticking fee of 100 basis points during the first month, then half of the final spread during months two and three and the full spread thereafter, said the person. A fee is paid to lenders to compensate them for the time between the commitment and the actual funding.

Leverage, or debt to earnings before interest, taxes, depreciation and amortization, will be 3.6 times on a senior secured basis and 4.8 times total, the person said. The debt is rated B1 by Moody’s Investors Service and BB- by Standard & Poor’s.

Barclays Plc, Credit Suisse Group AG, Deutsche Bank AG and Goldman Sachs Group Inc. are arranging the financing for Tampa, Florida-based company, according to data compiled by Bloomberg.

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