Hawaiian Telecom delays $875 million credit facility launch until Tuesday

By Sara Rosenberg

New York, April 7 - Hawaiian Telecom has pushed off the bank meeting to launch its proposed $875 million credit facility to Tuesday from this Thursday in order to give the syndicate more time to get documentation together, according to a market source.

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

The deal is expected to consist of a $400 million term loan B, a $175 million revolving credit facility and a $300 million term loan A.

The term loan B is talked in the Libor plus 225 basis points area, a source said.

Proceeds will be used to help fund The Carlyle Group's $1.65 billion acquisition of Verizon Hawaii from Verizon Communications Inc.

Under the LBO agreement, which was announced around mid-year 2004, Carlyle will acquire Verizon's Hawaii-based local telephone operations as well as the print directory, long distance and internet service provider operations; Verizon Wireless is not included in the transaction.

The closing of the transaction is contingent on approvals from the Hawaii Public Utilities Commission, the Federal Communications Commission and the U.S. Department of Justice, and on successfully obtaining the proposed financing.

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