Communications Sales to launch $2.5 billion facility on Wednesday

By Sara Rosenberg

New York, March 31 – Communications Sales & Leasing Inc. is scheduled to hold a bank meeting at 10 a.m. ET on Wednesday to launch a $2.5 billion credit facility, according to sources.

J.P. Morgan Securities LLC and Bank of America Merrill Lynch are the lead banks on the deal.

The facility consists of a $500 million five-year revolver and a $2 billion 7˝-year term loan, sources said.

Pricing talk on the term loan is Libor plus 400 basis points with a 1% Libor floor and an original issue discount of 99, sources continued.

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

Proceeds will be used to help fund the company’s spinoff from Windstream Holdings Inc.

Windstream expects to distribute approximately 80.1% of Communications Sales & Leasing shares on April 24 to Windstream shareholders of record as of 5 p.m. ET on April 10. The distribution is conditioned upon satisfaction of certain customary closing conditions, including financing of the transaction.

Communications Sales & Leasing is a real estate investment trust that owns fiber and copper network and other fixed real estate assets.

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