Windstream talks $500 million DIP term loan at Libor plus 275-300 bps

By Sara Rosenberg

New York, March 1 – Windstream Services LLC is shopping its $500 million debtor-in-possession covenant-light term loan at price talk of Libor plus 275 basis points to 300 bps with no Libor floor and an original issue discount of 99.5, according to a market source.

The term loan has 101 call protection during the first six months and no amortization, the source said.

The company’s $1 billion 24-month DIP facilities also include a $500 million revolver.

Under the DIP terms, the company has full discretion to use asset sales proceeds, up to an aggregate amount of $25 million per fiscal year, for general corporate purposes.

The company must provide financial statements quarterly, annually audited, and a rolling 13-week cash forecast, updated every four weeks with a budget variance/reconciliation report, the source continued.

Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, Barclays and Deutsche Bank Securities Inc. are the lead arrangers on the deal that launched with a call on Thursday afternoon. Citi is the administrative agent.

Commitments are due at noon ET on Wednesday, the source added.

Proceeds will be used for general corporate purposes, adequate protection payments and restructuring expenses.

Windstream is a Little Rock, Ark.-based telecommunications provider. The company filed bankruptcy on Feb. 25 under Chapter 11 case number 19-22312.

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