Hawaiian Telcom talks $320 million term loan B at Libor plus 400 bps

By Sara Rosenberg

New York, Nov. 13 – Hawaiian Telcom is talking its $320 million seven-year term loan B (B1/B) at Libor plus 400 basis points with a 1% Libor floor, according to a market source.

Of the total term loan amount, the portion that is a refinancing of the company’s existing term loan due June 6, 2019 is being offered at an original issue discount of 99.5, and the new money portion is being offered at a discount of 99, the source said.

As of Sept. 30, there was $293.9 million outstanding under the existing term loan, and pricing on the debt is Libor plus 400 bps with a 1% Libor floor.

Covenants in the new term loan include a maximum leverage ratio.

UBS AG is the bookrunner on the deal that launched with a bank meeting on Thursday.

In addition to refinancing existing bank debt, the term loan will be used to add cash to the balance sheet.

Hawaiian Telcom is a Honolulu-based provider of integrated communications services.

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