Article: Skype and Terra-Gen Deals Hit Loan Market.(Loan Market Buzz)

Byline: Editorial Staff

JPMorgan, Barclays and RBC Capital last week launched a $600 million term loan for a group of investors to purchase a 65% stake in Skype. Price talk was at Libor plus 600 bps, with an OID of 97. The banks arranged the loan at the beginning of September. (BLR, Sept. 14, 2009). The investor group-Silver Lake, Index Ventures, Andreessen Horowitz and the Canada Pension Plan-is purchasing the shares in the internet telephone provider from EBay, the San Jose, Calif.-based internet auction Web site. The transaction is valued at roughly $2.75 billion. Under the terms of the deal, EBay will receive about $1.9 billion in cash and a note worth $125 ...

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