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Cleveland Unlimited to launch $200 million facility on Thursday
By Sara Rosenberg
New York, Oct. 26 - Cleveland Unlimited Inc. is scheduled to hold a bank meeting on Thursday morning to launch its proposed $200 million senior secured credit facility, according to a market source.
SunTrust Robinson Humphrey and Moelis & Co. LLC are leading the deal.
The facility consists of a $20 million four-year revolver and a $180 million six-year term loan, the source said.
Pricing guidance on the revolver is Libor plus 600 basis points to 650 bps, with a 75 bps unused fee, and on the term loan is Libor plus 650 bps to 700 bps with a 1.75% Libor floor and an original issue discount of 97 to 98.
The facility is in connection with the merger of Cleveland Unlimited with Coral Wireless LLC and will be used to refinance existing debt at both companies and fund working capital.
Pro forma for the merger on an last 12-months basis for the period ended June 30, the company had revenue of $191.5 million and adjusted EBITDA of $58.2 million.
Pro forma total leverage will be 3.25 times.
Post merger, Cleveland-based Cleveland Unlimited will be a provider of unlimited, national wireless voice and data services for a flat monthly rate serving the Hawaiian Islands plus the Greater Cleveland, Columbus and Indianapolis markets.
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