Communications Sales lifts term loan to $2.14 billion, sets OID at 98

By Sara Rosenberg

New York, April 15 – Communications Sales & Leasing Inc. upsized its 7˝-year term loan to $2.14 billion from $2 billion and changed the original issue discount to 98, from revised talk of 98 to 98˝ and initial talk of 99, according to a market source.

Pricing on the term loan is Libor plus 400 basis points. Early in the day, the spread was increased to Libor plus 425 bps from initial talk of Libor plus 400 bps, but late day it reverted back to the original talk, the source said.

Another change was that the 101 soft call protection was extended to one year from six months.

The term loan still has a 1% Libor floor.

The company’s now $2.64 billion credit facility, up from $2.5 billion, also includes a $500 million five-year revolver.

J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Barclays, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc., RBC Capital Markets LLC, SunTrust Robinson Humphrey Inc., Wells Fargo Securities LLC, BNP Paribas Securities Corp. and MUFG are the leads on the deal.

Proceeds from the credit facility and $1.51 billion of notes will be used to help fund the company’s spinoff from Windstream Holdings Inc.

The bonds were downsized from $1.65 billion with the term loan upsizing.

Windstream expects to distribute about 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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