Midcontinent Communications flexes term loan B to Libor plus 250 bps

By Sara Rosenberg

New York, Nov. 22 – Midcontinent Communications reduced pricing on its $285 million seven-year term loan B to Libor plus 250 basis points from Libor plus 275 bps, according to a market source.

Also, the 0.75% Libor floor was removed so that the term loan B now has no floor, the source said.

As before, the term loan B has an original issue discount of 99.75, 101 soft call protection for six months and a senior secured leverage covenant.

The company’s $535 million credit facility (Ba1/BB+) also includes a $250 million five-year revolver priced at Libor plus 225 bps.

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.

Proceeds will be used to refinance an existing credit facility.

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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