Sandvine modifies discount on $400 million first-lien term loan to 94

By Sara Rosenberg

New York, Aug. 23 – Sandvine Corp. (PNI Canada Acquireco Corp.) tightened the original issue discount on its $400 million five-year first-lien term loan (B3/B-) to 94 from revised talk of 93, but it is still coming wide of initial talk of 99, according to a market source.

The term loan is priced at Libor plus 575 basis points with a 1% Libor floor and includes 101 soft call protection for one year.

Earlier in syndication, pricing on the term loan was increased from talk of Libor plus 450 bps to 475 bps, the call protection was pushed out from six months, the maturity was shortened from seven years, the one pricing leverage-based step-down was removed, the incremental allowance was reduced, and certain other documentation changes were made.

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

Commitments were due at 2 p.m. 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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