Intermedia.net to launch $285 million credit facility on Thursday

By Sara Rosenberg

New York, Nov. 14 – Intermedia.net Inc. set a bank meeting for Thursday to launch its previously announced $285 million credit facility, according to a market source.

SunTrust Robinson Humphrey Inc. and TD Securities (USA) LLC are the leads on the deal.

The facility consists of a $25 million five-year revolver (B1/B+), a $190 million seven-year first-lien term loan (B1/B+) and a $70 million eight-year second-lien term loan (Caa1/CCC+).

Price talk on the first-lien term loan is Libor plus 475 basis points with a 1% Libor floor, and talk on the second-lien term loan is Libor plus 925 bps with a 1% Libor floor, the source said.

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

Proceeds will be used to help fund the buyout of the company by Madison Dearborn Partners from Oak Hill Capital Partners.

Closing is expected this year, subject to regulatory approvals and other customary conditions.

Intermedia.net is a Mountain View, Calif.-based provider of cloud business applications.

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