Sorenson Communications lines up $600M term loan for refinancing

Sorenson Communications LLC is in the market with a $600 million first-lien term loan via lead arrangers Credit Suisse, Blackstone and KKR Capital Markets, according to sources. A lender call is scheduled for 1 p.m. ET on March 4, and commitments are due by 5 p.m. ET on March 11.

Price talk for the five-year term loan is L+550-575, with a 0.75% Libor floor and an issue price of 98.50. The loan will amortize at 10% per annum and will be governed by a net first-lien leverage covenant. Lenders are offered six months of 101 soft call protection.

That works out to a yield to maturity of roughly 6.88%-7.15%.

Proceeds will be used to refinance the issuer's existing debt. The issuer's existing TLB due April 2024 was placed in 2019 at pricing of L+650 with a 0% floor. It too has 10% amortization and is covered by a first-lien leverage covenant.

Sorenson is a provider of communications equipment for the deaf and hard of hearing.