Windstream talks $600 million term loan B-3 at discount of 99

By Sara Rosenberg

New York, July 25 - Windstream Corp. launched its $600 million seven-year term loan B-3 on Wednesday afternoon with an original issue discount of 99, according to market sources.

Price talk on the B-3 loan came out earlier at Libor plus 325 basis points to 350 bps with a 1% floor.

The company is also getting a $300 million five-year term loan A-4 talked at Libor plus 225 bps (subject to a grid) with no Libor floor.

J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Barclays Capital Inc., Citigroup Global Markets Inc., CoBank, Goldman Sachs & Co., Morgan Stanley Senior Funding Inc., RBC Capital Markets LLC, RBS Securities Inc., SunTrust Robinson Humphrey Inc., Union Bank of California and Wells Fargo Securities LLC are the lead banks on the $900 million of new term loan debt (Baa3).

Proceeds will be used to repay existing revolver debt and for working capital needs.

With the new debt, the company is seeking consents from lenders to amend its existing credit facility to allow for the borrowings and revise certain other definitions and provisions.

The amendment and restatement is expected to be completed in August.

Windstream is a Little Rock, Ark.-based provider of advanced communications and technology solutions, including managed services and cloud computing.

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