Segra Residential sets talk on first- and second-lien term loans

By Sara Rosenberg

New York, Aug. 5 – Segra Residential released price talk on its $360 million seven-year first-lien term loan and $110 million eight-year second-lien term loan with its lender call on Thursday, according to a market source.

The first-lien term loan is talked at Libor plus 375 basis points to 400 bps with a 0.75% Libor floor and an original issue discount of 99 to 99.5, and the second-lien term loan is talked at Libor plus 700 bps to 725 bps with a 0.75% Libor floor and a discount of 98.5 to 99, the source said.

The first-lien term loan has 101 soft call protection for six months and amortization of 1% per annum, and the second-lien term loan has call protection of 102 in year one and 101 in year two.

Goldman Sachs Bank USA, TD Securities (USA) LLC and Fifth Third are the bookrunners on the deal.

Commitments are due on Aug. 17, the source added.

Proceeds will be used to fund the recapitalization of Segra following the sale of its commercial fiber business to Cox Communications.

Segra is a provider of high-speed, fiber-based connectivity solutions over an owned network to primarily residential customers and small business customers.

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