Midcontinent Communications to launch $535 million facility Thursday

By Sara Rosenberg

New York, Nov. 9 – Midcontinent Communications is scheduled to hold a bank meeting at 10 a.m. ET on Thursday to launch a $535 million credit facility, according to a market source.

SunTrust Robinson Humphrey Inc., Wells Fargo Securities LLC, RBC Capital Markets, TD Securities (USA) LLC and U.S. Bank are the lead banks on the deal.

The facility consists of a $250 million five-year revolver and a $285 million seven-year term loan B, the source said.

Price talk on the revolver is Libor plus 225 basis points, and the term loan B is talked at Libor plus 275 bps with a 0.75% Libor floor and an original issue discount of 99.75, the source continued.

Included in the term loan B is 101 soft call protection for six months, and the debt has a senior secured leverage covenant.

Proceeds will be used to refinance an existing credit facility.

Commitments are due on Nov. 22, the source added.

Secured leverage is 1.7 times and total leverage is 4.8 times.

Midcontinent Communications is a Sioux Falls, S.D.-based provider of cable television, local and long-distance digital telephone service and high-speed internet access.

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