Syniverse Taps Jefferies for Debt Restructuring, Proposes Loan Split

Carlyle Group-backed Syniverse Technologies has engaged Jefferies Financial Group to advise on a debt restructuring aimed at extending its loan maturities, according to a Bloomberg report citing people familiar with the matter. The mobile services company is pursuing a so-called liability management exercise to reorganize its existing obligations.

Proposed Restructuring Details

The plan centers on splitting Syniverse's first-lien term loan into multiple portions, each with different terms and seniority. This strategy is designed to provide the company with financial flexibility while offering incentives to participating lenders.

According to the report, the key components of the proposed transaction are:

• An extension for a $984 million first-lien loan at a rate of 8 percentage points over the U.S. benchmark. This debt would be designated "first-out," ensuring those lenders are repaid before other first-lien creditors.
• An offering of approximately $95 million in new money for the first-lien loan at an interest rate of 9.5 percentage points above the benchmark.
• A $573 million first-lien loan tranche that would be "second-out" for repayment. This debt would carry a 14.5% annual interest rate that is paid-in-kind (PIK), meaning interest accrues to the principal balance instead of being paid in cash.

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Implications for Creditors

The structure creates clear tiers for repayment priority. Lenders who decline to participate in the extension will reportedly have their holdings moved to second-lien debt, placing them in a subordinate position for repayment, the people said.

Liability management exercises like this one have become a common tool for companies seeking to address debt walls without undergoing a formal bankruptcy proceeding. The PIK interest feature on the junior tranche helps the company preserve cash, a crucial benefit for a business managing a heavy debt load. The financing has reportedly already garnered support from the largest holders of the existing debt.