General Communication flexes $275 million term B to Libor plus 375 bps

By Sara Rosenberg

New York, Dec. 18 – General Communication Inc. (GCI) increased pricing on its $275 million seven-year covenant-light term loan B (Ba2/BB+) to Libor plus 375 basis points from talk of Libor plus 325 bps to 350 bps, according to a market source.

The loan still has a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

Commitments are due at noon ET on Friday, accelerated from 5 p.m. ET on Friday, the source said.

SunTrust Robinson Humphrey Inc., Bank of America Merrill Lynch and Credit Agricole are the leads on the deal.

Allocations are expected on Monday, the source added.

Proceeds will be used to help fund the acquisition of Alaska Communications’ wireless subscriber base and its 33% interest in its partnership in the Alaska Wireless Network LLC for $300 million.

Alaska Wireless Network was formed in July 2013 and combined the wireless network assets of Alaska Communications and General Communication. Under terms of the agreement, General Communication retained two-thirds ownership and Alaska Communications retained one-third ownership.

Closing is expected in the first quarter of 2015, subject to certain conditions.

Pro forma for the acquisition, senior leverage is 1.9 times and total leverage is 4.2 times.

General Communication is an Anchorage-based telecommunications provider.

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