Xplornet launches incremental term loan, repricing to investors

By Sara Rosenberg

New York, Feb. 17 – Xplornet Communications Inc. launched on its lender call on Wednesday a C$20 million U.S. dollar equivalent fungible incremental first-lien term loan due June 10, 2027 and a repricing of its existing $989 million first-lien term loan due June 10, 2027, according to a market source.

Price talk on the term loan debt is Libor plus 375 basis points to 400 bps with a 0% Libor floor and a par issue price, the source said.

The term loan debt is getting 101 soft call protection for six months.

Expected term loan ratings are B3/B-.

Credit Suisse Securities (USA) LLC and Barclays are the lead arrangers on the deal.

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

Proceeds from the incremental term loan will be used for general corporate purposes, and the repricing will take the existing term loan down from Libor plus 475 bps with a 0% Libor floor.

Xplornet is a Woodstock, New Brunswick-based broadband service provider in Canada.

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