| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers M > Headlines for Midcontinent Communications > News item |
MidContinent cuts spread on $350 million term B to Libor plus 300 bps
By Sara Rosenberg
New York, March 1 - MidContinent Communications lowered pricing on its $350 million term loan B to Libor plus 300 basis points from Libor plus 325 bps, according to a market source. There is a step-down to Libor plus 275 bps when leverage is 3.5 times.
In addition, the Libor floor was reduced to 1% from 1.25%, the source said.
As before, the term loan B is being offered at par and includes 101 soft call protection for one year.
The company's $675 million credit facility also provides for a $125 million revolver and a $200 million term loan A, with both of these tranches priced at Libor plus 275 bps.
Commitments are due at 5 p.m. ET on Wednesday, accelerated from March 7 due to heavy oversubscription.
Proceeds will be used to refinance an existing credit facility that has the same structure.
Through this transaction, the company is reducing pricing on its pro rata debt by about 100 bps, and pricing on the term loan B is dropping from Libor plus 450 bps with a step-down to Libor plus 425 bps once leverage falls below 3.5 times and a 1.75% Libor floor. The B loan has 101 soft call protection for one year.
When the facility was obtained in August 2010 to fund a distribution, to refinance debt and for general corporate purposes, the term loan B was sold at an original issue discount of 981/2.
SunTrust Robinson Humphrey Inc., Wells Fargo, RBC Capital Markets and U.S. Bank are the joint bookrunners on the deal, with SunTrust the left lead.
Corporate and loan ratings are B1/B+, and, since the close in August, leverage has dropped almost a half turn to roughly 4.3 times.
MidContinent Communications is a Minneapolis-based provider of cable television, local and long-distance digital telephone service and high-speed internet access.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.