American Teleconferencing downsizes first-, second-lien add-on loans

By Sara Rosenberg

New York, March 27 – American Teleconferencing Services Ltd. (Premiere Global Services) trimmed its add-on first-lien term loan due December 2021 to $115 million from $140 million and its add-on second-lien term loan due June 2022 to $50 million from $70 million, according to a market source.

In addition, original issue discount talk on the add-on first-lien term loan was revised to a range of 98 to 99 from just 98, and the 101 soft call protection was extended to one year from six months, the source said.

Furthermore, the total leverage covenant was changed to 5.5 times through March 31, 2018, stepping down 0.25 times annually for three years, from a 6.25 times opening level.

Pricing on the add-on first-lien term loan is Libor plus 650 basis points with a 1% Libor floor, in line with existing first-lien term loan pricing.

Commitments for the first-lien loan are due at noon ET on Tuesday, with allocations expected thereafter, the source added.

The add-on second-lien term loan is priced at Libor plus 950 bps with a 1% Libor floor, in line existing second-lien pricing, and is being issued at an original issue discount of 98.

Deutsche Bank Securities Inc., Barclays, Macquarie Capital (USA) Inc. and SunTrust Robinson Humphrey Inc. are the bookrunners on the first-lien loan, with Barclays the administrative agent. Eaglehill is the lead arranger on the second-lien loan, with Wilmington Trust the administrative agent.

Proceeds will be used to repay an outstanding revolver draw and seller note and to fund a dividend to shareholders, which was reduced to $100 million from $145 million with the downsizings to the term loans.

American Teleconferencing is an Atlanta-based provider of audio conferencing, web and video collaboration solutions for businesses.

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