GCI gets amended, restated $240 million loan, $150 million revolver

By Angela McDaniels

Tacoma, Wash., May 6 - GCI, Inc. subsidiary GCI Holdings, Inc. entered into an amended and restated senior credit agreement on April 30 that provides a $240 million delayed-draw term loan and a $150 million revolving senior credit facility, according to an 8-K filing with the Securities and Exchange Commission.

The interest rate is Libor plus a margin that depends on the company's total leverage ratio ranging from 200 basis points to 300 bps. It is initially set at Libor plus 275 bps. The commitment fee is either 37.5 bps or 50 bps, also depending on leverage.

The amended credit facility will mature on April 30, 2018.

The term loan can be drawn until April 30, 2014. The company can make up to three draws.

The company can seek an add-on term loan as long as the sum of the term loans plus the unfunded delayed-draw term loan commitments and the revolving commitments does not exceed $540 million.

The company can seek up to $60 million of additional revolving commitments subject to the same $540 million cap.

If the company's senior leverage ratio exceeds 2.25 to 1 on two consecutive compliance certificate reference dates, the term loan will be subject to amortization until the leverage ratio declines. The amortization amount will be 1.25% in 2014, 1.875% in 2015, 3.125% in 2016 and 3.75% in 2017.

Credit Agricole Corporate and Investment Bank is the administrative agent, Union Bank, NA is the syndication agent, and SunTrust Bank is the documentation agent. Credit Agricole, Union Bank and SunTrust Robinson Humphrey, Inc. were the bookrunners.

Under the credit agreement financial covenants, the company's total leverage ratio is capped at 6.5 to 1 until June 30, 2014 and then at 5.95 to 1, its senior leverage ratio is capped at 3 to 1, and it must maintain a minimum interest coverage ratio of 2.5 to 1.

The amended credit facility is secured by a security interest on substantially all of the assets of GCI Holdings and the subsidiary guarantors and on the stock of GCI Holdings.

The amended credit facility replaced the company's previously existing senior credit facility.

GCI is an Anchorage-based provider of communications services.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.