Cleveland Unlimited's $200 million credit facility now expected as November business

By Sara Rosenberg

New York, Oct. 28 - Cleveland Unlimited Inc. has delayed the launch of its $200 million senior secured credit facility to sometime in November from Thursday as a result of merger-related issues, according to a market source.

The hope is to bring the deal back in a week or so, the source remarked.

SunTrust Robinson Humphrey Inc. 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 a 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, and 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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