Lumen launches $113.3 million credit facility at Libor plus 500 bps

By Sara Rosenberg

New York, May 16 - Lumen held a bank meeting on Monday to launch a proposed $113.3 million senior secured credit facility that is being talked at Libor plus 500 basis points with a 1.5% Libor floor and an original issue discount of 981/2, according to a market source.

The facility consists of a $10 million revolver and a $103.3 million term loan, the source said.

Bank of Ireland and Madison Capital are leading the deal, with Bank of Ireland the left lead.

Proceeds will be used to merge the financing of Watchfire and SloanLED, both owned by Harbour Group, and to fund a dividend payment. The two companies will continue to operate as separate entities.

Other funds for the transaction will come from $36.9 million of mezzanine debt from Golub Capital.

Leverage through the credit facility is 3.5 times and total leverage is 4.75 times.

Watchfire is a Danville, Ill.-based provider of branded LED displays, billboards and related software and services. SloanLED is a Ventura, Calif.-based provider of specialty LED lighting systems for use in sign, spa and optoelectronic applications.

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