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Lumos Networks adds $475 million unfunded term loan B, cuts pricing
By Sara Rosenberg
New York, Oct. 27 – Lumos Networks Corp. (MTN Infrastructure TopCo Inc.) added a $475 million unfunded term loan B to its capital structure that will be fungible upon closing, which is expected in the first quarter of 2018, with the in-market $485 million seven-year covenant-light first-lien funded term loan B, according to a market source.
Pricing on the now $960 million in total term loan B debt is Libor plus 325 basis points with a 1% Libor floor and an original issue discount of 99.5, the source said.
At launch, the spread on the funded term loan B had been talked at Libor plus 350 bps to 375 bps.
The unfunded term loan B has a ticking fee of half the spread from days 46 to 75 and the full spread thereafter.
As before, the term loan B has 101 soft call protection for six months.
The company’s now $1,025,000,000 of senior secured credit facilities also include a $65 million five-year revolver.
Morgan Stanley Senior Funding Inc. and Goldman Sachs Bank USA are the lead banks on the deal.
Recommitments were scheduled to be due at 1 p.m. ET on Friday, the source added.
Proceeds from the funded term loan will be used to help fund the buyout of the company by EQT Infrastructure for $18.00 per share, resulting in an enterprise value of about $950 million. The unfunded term loan will be used to help fund EQT’s acquisition of a majority stake of Spirit Communications from its founding partners who will retain a significant ownership interest in the company.
Lumos is a Waynesboro, Va.-based fiber-based service provider in the Mid-Atlantic region. Spirit is a Columbia, S.C.-based pure-play provider of fiber based data and broadband services.
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