Conterra Ultra sets final terms on $365 million credit facility

By Paul A. Harris

Portland, Ore., April 26 – Conterra Ultra Broadband finalized pricing on its $365 million credit facility, according to a market source.

A $250 million seven-year covenant-lite first-lien term loan B priced with a 450 basis points spread to Libor, at the wide end of the 425 to 450 bps spread talk. The tranche, which has a 0% Libor floor, priced at 99.50, rich to the 99 price talk.

The $65 million eight-year covenant-lite second-lien term loan priced with an 800 bps spread to Libor, 25 bps inside of the 825 to 850 bps talk. The second-lien tranche, which also has a 0% Libor floor, came on top of price talk at 98.50.

Included in the first-lien term loan is 101 soft call protection for six months, and the second-lien term loan has call protection of 102 in year one and 101 in year two.

The company’s $365 million of credit facilities also provide for a $50 million Libor plus 425 bps five-year revolver, with a 0% Libor floor, which priced at 99.50.

TD Securities (USA) LLC was the lead arranger on the deal.

Proceeds will be used to refinance existing debt and for general corporate purposes.

Conterra is a provider of bandwidth infrastructure services.

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