Hawaiian Telcom $300 million term loan expected in next few weeks

By Sara Rosenberg

New York, May 16 - Hawaiian Telcom Holdco Inc. plans on being in market with a new $300 million term loan "within the next two to three weeks," assuming that favorable market conditions persist, Eric Yeaman, president and chief executive officer, said in a conference call on Monday.

Proceeds will be used to refinance and extend the maturity of the company's existing $300 million term loan.

"Based on early indications, we believe we can lower our borrowing costs by 250 to 350 basis points," Yeaman remarked in the call.

The existing term loan due Oct. 28, 2015 is priced at Libor plus 600 bps with a 3% Libor floor. The company has the option to request that interest at the rate of 300 bps be paid in-kind for 2010 and 150 bps be paid in-kind for 2011.

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

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