Clarity Telecom completes syndication of $170 million credit facility

By Sara Rosenberg

New York, Aug. 7 – Clarity Telecom wrapped syndication of a $170 million credit facility that was done at an original issue discount of 99½, according to a market source.

The facility consists of a $20 million five-year revolver, a $55 million five-year term loan A and a $95 million seven-year term loan B, the source said.

The revolver and term loan A are priced at Libor plus 400 basis points, and the term loan B is priced at Libor plus 425 bps with a 1% Libor floor and has 101 soft call protection for six months.

During syndication, the term loan B was downsized from $100 million, the source added.

The facility has maximum total leverage and fixed charge coverage covenants.

Proceeds will be used to help fund the roughly $262 million acquisition of broadband assets in Rapid City and Sioux Falls, S.D., from WOW! Internet, Cable & Phone.

GE Capital and SunTrust Robinson Humphrey Inc. are leading the debt.

Pamlico Capital is the sponsor.

Closing is expected in September, following the satisfaction of regulatory requirements and other customary conditions.

Clarity Telecom is a Sikeston, Mo.-based broadband communications platform focused on providing internet, cable television and telephone services.

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