Alaska Communications sets Thursday launch for $385 million credit facility

By Sara Rosenberg

New York, Jan. 5 - Alaska Communications Systems Group Inc. has scheduled a bank meeting for Thursday to launch its previously announced $385 million senior credit facility, according to a market source.

CIBC and JPMorgan are the lead banks on the deal, with CIBC the left lead.

The facility consists of a $50 million revolver and a $335 million term loan B that is talked at Libor plus 225 to 250 basis points, the source said.

Proceeds from the facility, along with proceeds from a proposed $75 million common stock offering, will be used to repay the existing senior secured credit facility and to repurchase all outstanding 9 3/8% senior subordinated notes due 2009 and approximately 35% of the outstanding 9 7/8% senior notes due 2011.

Pro forma net leverage after the offerings would be 4.7x, down from 5.3x, a different market source said.

Alaska Communications is an Anchorage, Alaska, communications provider.

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