Article
Intermedia Buyout by 26North to Be Financed With $400M Private Debt Facility
Cloud communications firm Intermedia Intelligent Communications is set to receive a roughly $400 million debt facility from direct lenders to support its buyout by 26North Partners, according to sources.
The private equity firm entered a definitive agreement to purchase Intermedia from Madison Dearborn Partners in March following a sale process led by Jefferies, according to a press release. The deal is expected to close in the second quarter.
26North considered financing the acquisition through the broadly syndicated loan market before turning to private lenders for the deal, sources added.
Intermedia generates approximately $100 million of EBITDA, sources said, and has $430 million in annual recurring revenue, according to the press release.
The firm provides AI-powered cloud communications, collaboration and customer engagement services and has over 150,000 business customers. Madison Dearborn acquired the company from Oakhill in 2017, according to a press release.
Intermedia completed a $345 million refinancing of its balance sheet in 2024 by entering into a new RCF and term loan with some of its existing lenders, according to a press release.
That refinancing pushed out the company’s debt maturities to April 2029. Meanwhile, Octus’ BDC Database shows that Audax Credit BDC and Fortress Private Lending Fund are holders of Intermedia’s unitranche debt due in 2029, priced at SOFR+525 bps.
Recent deals in the cloud-based and AI-powered contact center industry include Court Square Capital Partners’ leveraged buyout of CallTower from BV Investment Partners earlier in April, Octus previously reported. AB Private Credit Investors and Churchill Asset Management provided debt financing for that transaction, serving as lead arranger and joint lead arranger, respectively.
26North and Intermedia both declined to comment.
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