U.S. TelePacific prices $505 million term loan at Libor plus 500 bps

By Jennifer Chiou

New York, Nov. 21 – U.S. TelePacific Corp. set final pricing on its $505 million six-year first-lien term loan (B3/B-) at Libor plus 500 basis points with a 1% Libor floor and an original issue discount of 99, according to a market source.

Pricing came at the wide end of talk that had been set at Libor plus 475 bps to 500 bps.

The term loan has 101 soft call protection for one year and has maximum leverage and minimum interest coverage covenants.

The $530 million credit facility also includes a $25 million revolver.

Credit Suisse Securities (USA) LLC is the lead bank on the deal.

Proceeds will be used to refinance existing bank debt.

Commitments were due on Nov. 19.

U.S. TelePacific is a Los Angeles-based competitive local exchange carrier.

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