Telx Group firms discount price on $255 million term loan B at 94

By Sara Rosenberg

New York, Sept. 22 - Telx Group Inc. set the original issue discount on its $255 million six-year term loan B at 94, the wide end of revised talk of 94 to 95, according to a market source. Initial discount talk at launch had been 96 to 97.

Pricing on the term loan B is Libor plus 650 basis points, after flexing up last week from talk of Libor plus 600 bps to 625 bps.

There is a 1.25% Libor floor and 101 soft call protection for one year, which was added last week.

Also, when the pricing changes were made, the B loan was downsized from $290 million.

The company's $305 million senior secured credit facility (B1/B+) includes a $50 million five-year revolver as well.

Morgan Stanley Senior Funding Inc. and TD Securities (USA) LLC are the lead banks on the deal.

Proceeds will be used to help fund the buyout of the company by ABRY Partners and Berkshire Partners LLC from GI Partners.

As a result of the term loan downsizing, the company's mezzanine debt was increased by $35 million.

Telx is a New York-based provider of interconnection and colocation facilities.

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