By Paul A. Harris
St. Louis, Sept. 23 - US LEC Corp. sold $150 million of five-year senior second-lien floating-rate notes (B3/B-) at 99.50 on Thursday, according to an informed source.
The notes will pay a coupon of six-month Libor plus 850 basis points.
Price talk was six-month Libor plus 825 to 850 basis points.
Deutsche Bank Securities ran the books for the Rule 144A/Regulation S issue. Libertas was the co-manager.
Proceeds will be use to repay the company's outstanding senior credit facility and its senior subordinated notes and for working capital.
US LEC is a Charlotte, N.C., telecommunications carrier.
| Issuer: | US LEC Corp.
|
| Amount: | $150 million
|
| Maturity: | Oct. 1, 2009
|
| Security description: | Senior second-lien floating-rate notes
|
| Bookrunner: | Deutsche Bank Securities
|
| Co-manager: | Libertas
|
| Coupon: | Six-month Libor plus 850 basis points
|
| Price: | 99.50
|
| Call features: | Callable after Oct. 1, 2006 at 105.5, 103.5, par on or after Oct. 1, 2008
|
| Equity clawback: | Until Oct. 1, 2006 for 35% at par plus the applicable coupon
|
| Pricing date: | Sept. 23
|
| Settlement date: | Sept. 30
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B-
|
| Price talk: | Six-month Libor plus 825-850 basis points
|
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