Midcontinent Communications revises $650 million loan OID to 99.75

By Sara Rosenberg

New York, July 25 – Midcontinent Communications modified the original issue discount on its $650 million seven-year covenant-lite first-lien term loan B to 99.75 from 99.5, according to a market source.

Pricing on the term loan remained at Libor plus 225 basis points with a 0% Libor floor, but a step-down was added to Libor plus 200 bps when leverage gets below 3.5x, the source said.

The term loan has 101 soft call protection for six months.

Earlier in syndication, the term loan was downsized from $685 million as the company upsized its senior note offering to $350 million from $300 million.

SunTrust Robinson Humphrey Inc., Wells Fargo Securities LLC, CoBank, TD Securities (USA) LLC and MUFG are the lead banks on the deal.

Proceeds will be used to repay existing bank debt and notes.

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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