Airvana TL breaks above OID -Standard & Poor’s
August, 25 2010
Kelly Thompson / Chris Donnelly
The new $360 million term loan for Airvana Network Solutions broke for trading yesterday at 99/99.75, versus a 98 offer price, according to sources. The loan is priced at L+900, with a 2% LIBOR floor.
The term loan, which isn’t rated publicly, was upsized from $330 million. The incremental debt increases a dividend to owners S.A.C. Private Capital, GSO Capital Partners, Sankaty Advisors and ZelnickMedia, sources said. The change boosts the payout to roughly $205 million.
Jefferies Finance, Macquarie Capital (USA) and SG arranged the loan, which backs a dividend recapitalization of Airvana, a seller of mobile-broadband technology to wireless companies, according to sources.
The four-year term loan will include 15% amortization and a 100% excess-cash-flow sweep, sources said. The company has seen dramatic growth on the back of CDMA 3-G smartphone data traffic, according to sources, who note that EBITDA is about $165 million, based off LTM June 30 numbers. Total leverage for the transaction will run all-senior, at less than 2x, sources added.
Airvana was acquired this spring in a $530 million buyout by S.A.C. Private Capital, GSO Capital Partners, Sankaty Advisors and ZelnickMedia. S.A.C. contributed $92.5 million of equity to the buyout, while GSO put up $10 million, according to public proxy filings. Rollover equity comprised $28.6 million.
GSO agreed to provide up to $170 million of seven-year senior secured debt for the buyout at 14%, according to regulatory filings. The senior debt is subject to heavy call premiums. In this instance, Chelmsford, Mass.-based Airvana will be required to repay the debt at 107, based on the Dec. 17 commitment letter from GSO that was disclosed in connection with the buyout.
Airvana’s products allow wireless-phone service operators to provide broadband services to users of mobile phones, laptop computers, and other mobile devices.
The new $360 million term loan for Airvana Network Solutions broke for trading yesterday at 99/99.75, versus a 98 offer price, according to sources. The loan is priced at L+900, with a 2% LIBOR floor.
The term loan, which isn’t rated publicly, was upsized from $330 million. The incremental debt increases a dividend to owners S.A.C. Private Capital, GSO Capital Partners, Sankaty Advisors and ZelnickMedia, sources said. The change boosts the payout to roughly $205 million.
Jefferies Finance, Macquarie Capital (USA) and SG arranged the loan, which backs a dividend recapitalization of Airvana, a seller of mobile-broadband technology to wireless companies, according to sources.
The four-year term loan will include 15% amortization and a 100% excess-cash-flow sweep, sources said. The company has seen dramatic growth on the back of CDMA 3-G smartphone data traffic, according to sources, who note that EBITDA is about $165 million, based off LTM June 30 numbers. Total leverage for the transaction will run all-senior, at less than 2x, sources added.
Airvana was acquired this spring in a $530 million buyout by S.A.C. Private Capital, GSO Capital Partners, Sankaty Advisors and ZelnickMedia. S.A.C. contributed $92.5 million of equity to the buyout, while GSO put up $10 million, according to public proxy filings. Rollover equity comprised $28.6 million.
GSO agreed to provide up to $170 million of seven-year senior secured debt for the buyout at 14%, according to regulatory filings. The senior debt is subject to heavy call premiums. In this instance, Chelmsford, Mass.-based Airvana will be required to repay the debt at 107, based on the Dec. 17 commitment letter from GSO that was disclosed in connection with the buyout.
Airvana’s products allow wireless-phone service operators to provide broadband services to users of mobile phones, laptop computers, and other mobile devices.