Sandvine ups spread on $400 million term loan to Libor plus 575 bps

By Sara Rosenberg

New York, Aug. 22 – Sandvine Corp. (PNI Canada Acquireco Corp.) increased pricing on its $400 million first-lien term loan (B3/B-) to Libor plus 575 basis points from talk of Libor plus 450 bps to 475 bps, according to a market source.

Also, the original issue discount on the term loan widened to 93 from 99 and the 101 soft call protection was revised to one year from six months, the source said.

Furthermore, the maturity of the term loan was shortened to five years from seven years, the one pricing leverage-based step-down was removed, the incremental allowance was reduced and certain other documentation changes were made.

The term loan still has a 1% Libor floor.

J.P. Morgan Securities LLC and Societe Generale are the leads on the deal.

Commitments are due at noon ET on Wednesday, the source added.

Proceeds will be used to help fund the acquisition of Sandvine by Francisco Partners for C$4.40 per share, or about C$562 million, and merger with Procera Networks Inc., which is already owned by Francisco Partners.

Closing is subject to shareholder approval, court approval and regulatory approvals.

Sandvine is a Waterloo, Ont.-based provider of network policy control solutions. Procera is a Fremont, Calif.-based provider of network visibility and control across mobile and fixed broadband networks.

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