Peak 10 reduces revolving credit facility amount to $55 million

By Sara Rosenberg

New York, June 10 – Peak 10 Inc. downsized its revolver (B2/B) to $55 million from $65 million, according to a market source.

The company’s now $515 million credit facility, down from $525 million, still includes a $330 million seven-year first-lien covenant-light term loan (B2/B) and a $130 million eight-year second-lien covenant-light term loan (Caa2/CCC+).

Pricing on the first-lien term loan is Libor plus 400 basis points with a 25 bps step-down at 4 times leverage, a 1% Libor floor and an original issue discount of 99˝, and pricing on the second-lien term loan is Libor plus 725 bps with a 1% Libor floor and a discount of 99.

Included in the first-lien term loan is 101 soft call protection for six months, and the second-lien loan has call protection of 102 in year one and 101 in year two.

Earlier in syndication, pricing on the first-lien term loan was lowered from Libor plus 450 bps and the discount was revised from 99, and pricing on the second-lien term loan was cut from Libor plus 750 bps.

Credit Suisse Securities (USA) LLC, RBC Capital Markets and Jefferies Finance LLC are the lead banks on the deal, with Credit Suisse the left lead on the first-lien and RBC the left lead on the second-lien.

Proceeds will be used to help fund the buyout of the company by GI Partners from Welsh, Carson, Anderson & Stowe.

Closing on the credit facility is expected on June 17, the source added.

Peak 10 is a Charlotte, N.C.-based IT infrastructure and cloud provider.

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