Hawaiian Telcom sets Thursday launch for $300 million term loan

By Sara Rosenberg

New York, June 22 - Hawaiian Telcom Holdco Inc. has scheduled a bank meeting for Thursday to launch its proposed $300 million six-year term loan (B1), according to market sources.

Credit Suisse Securities (USA) LLC is the lead arranger on the term loan.

Price talk on the term loan is Libor plus 550 basis points with a 1.25% Libor floor and an original issue discount of 991/2, sources said.

The term loan includes 101 soft call protection for one year, sources added.

The company's $330 million credit facility also provides for a $30 million revolver (Ba1).

Proceeds will be used to refinance an existing $300 million term loan due Oct. 28, 2015 that is priced at Libor plus 600 bps with a 3% Libor floor and a $30 million revolver that is priced at Libor plus 400 bps with a 1.5% floor.

The company needed approval from Hawaii Public Utilities Commission to proceed with the deal, and this approval was obtained last Friday.

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

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