Premiere Global revises discount on $550 million term loan to 94

By Sara Rosenberg

New York, April 21 – Premiere Global Services Inc. widened the original issue discount on its $550 million six-year first-lien term loan to 94 from 96, according to a market source.

Pricing on the term loan is still Libor plus 650 basis points with a 1% Libor floor, and there is still 101 soft call protection for one year.

Amortization on the term loan is 5% per annum, and there is an excess cash flow sweep of 75% with steps to 50% at 2.65 times first-lien leverage, 25% at 2.15 times first-lien leverage and 0% at 1.65 times first-lien leverage.

The loan has an incremental allowance of $95 million free and clear with an unlimited amount subject to 3.4 times first-lien leverage, 4 times secured leverage and 4.25 times total leverage.

Unlimited restricted payments are subject to 2 times total leverage, the source continued.

The company’s $600 million credit facility also provides for a $50 million five-year revolver.

Covenants include a maximum total leverage ratio.

Commitments are due at 5 p.m. ET on Wednesday, the source added.

Barclays, SunTrust Robinson Humphrey Inc. and Macquarie Capital (USA) Inc. are the bookrunners on the debt.

Proceeds will be used to refinance debt that was put in place to fund the buyout of the company by Siris Capital Group LLC in December.

First-lien leverage is 3.4 times and total leverage is 3.9 times.

Premiere Global is an Atlanta-based provider of collaboration software and services.

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