New Issue: EarthLink prices $300 million 7 3/8% seven-year secured notes at par

By Paul A. Harris

Portland, Ore., May 14 - EarthLink, Inc. priced a $300 million issue of seven-year senior secured notes (Ba3/B+/) at par to yield 7 3/8% on Tuesday, according to a syndicate source.

The yield printed in the middle of the 7¼% to 7½% yield talk.

Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Jefferies LLC were the joint bookrunners for the quick-to-market deal.

Proceeds will be used to refinance the Deltacom 10½% notes due 2016.

The network, communications and IT services provider is based in Atlanta.

Issuer:	EarthLink, Inc.
Amount:	$300 million
Maturity:	June 1, 2020
Securities:	Senior secured notes
Bookrunners:	Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Jefferies LLC
Co-managers:	Fifth Third Securities Inc., Regions Securities LLC
Coupon:	7 3/8%
Price:	Par
Yield:	7 3/8%
Spread:	609 bps
Call features:	Callable on June 1, 2016 at 105.531, 103.688, 101.844, par on and after June 1, 2019
Equity clawback:	35% at 107.375 until June 1, 2016
Change-of-control put:	101%
Trade date:	May 14
Settlement date:	May 29
Ratings:	Moody's: Ba3
	Standard & Poor's: B+
Distribution:	Rule 144A and Regulation S with registration rights
Price talk:	7¼% to 7½%
Marketing:	Quick to market

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