Hawaiian Telcom details structure on $1.06 billion facility ahead of Friday launch

By Sara Rosenberg

New York, May 17 - Hawaiian Telcom Communications, Inc. released details on the structure of its proposed $1.06 billion credit facility as the deal is getting ready to launch with a bank meeting on Friday, according to a market source.

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

The facility consists of a $200 million amended revolver and an $860 million new seven-year term loan C, the source said, adding that pricing will be announced at the meeting.

Proceeds from the term loan C will be used to replace the company's existing term loan A and term loan B.

Earlier this month, Hawaiian Telcom announced the sale of its directory publishing business to Local Insight Media for $435 million. Under the existing credit facility, the company is required to get the consent of a majority of the lenders to permit the sale of the business.

This recapitalization deal is linked to the sale to optimize the company's capital structure and allow for the transaction.

Hawaiian Telcom is a Honolulu, Hawaii-based telecommunications provider.

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