Triton PCS $100 million revolver expected to close late next week

By Sara Rosenberg

New York, June 4 - Triton PCS Inc. is expected to close on a new $100 million senior secured five-year revolver late next week, according to a syndicate source. Lehman Brothers is the lead arranger and administrative agent, and Citigroup is the co-lead arranger on the deal.

The revolver carries an interest rate of Libor plus 275 basis points and a commitment fee of 50 basis points.

There was no bank meeting for the deal since it was not and will not be syndicated to the general market.

"It's kind of a club revolver. You got four guys involved in the bonds. It's really just a matter of four banks who are involved in the bonds stepping up to provide this revolver. And then we'll bring in a few banks to reduce exposure. We took commitments from the underwriters on the bonds and then we canvassed the existing bank group," the syndicate source told Prospect News on Wednesday.

On May 30, the Berwyn, Pa. wireless carrier provider priced $725 million 8½% senior unsecured notes due 2013. Lehman Brothers, Citigroup, Merrill Lynch and JPMorgan were the four bookrunners for the deal, which will be used to retire the company's existing 11% senior subordinated discount notes due 2008 and to repay fully outstanding borrowings and terminate its existing senior credit facility.

The revolver is being used purely as a liquidity cushion, although it available for working capital and general corporate purposes. It will not be drawn at closing and the company currently has no plans to draw on it in the near term.

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