Goldman Sachs, Morgan Stanley and MUFG will act as joint lead arrangers and joint bookrunners on senior secured credit facilities for Fusion, a cloud services provider. The facilities will be used in part to support Fusion’s acquisition of the cloud and business services business of Birch Communications.
The facilities are expected to consist of $570 million senior secured term loans and a revolving credit facility, which is expected to be undrawn at closing. Borrowings under the facilities will be guaranteed by each of Fusion’s current and future subsidiaries, subject to certain customary exceptions, and will be secured by a lien on substantially all of the assets of Fusion and each of the guarantors. The interest rate, maturity and other terms of the facilities are to be determined.
Fusion intends to use the net proceeds from the facilities to refinance its existing debt, to retire existing senior debt of Birch as part of the acquisition and for general corporate purposes.
