MetroNet talks first-lien term loans at Libor plus 375-400 bps

By Sara Rosenberg

New York, May 12 – MetroNet launched on Wednesday its $585 million seven-year first-lien term loan B (B2/B-) and $65 million first-lien delayed-draw term loan (B2/B-) with price talk of Libor plus 375 basis points to 400 bps with a 0.75% Libor floor and an original issue discount of 99 to 99.5, according to a market source.

The first-lien term loan has 101 soft call protection for six months and amortization of 1% per annum, the source said.

Commitments are due on May 26.

The company is also getting an $85 million privately placed second-lien term loan and a $175 million privately placed second-lien delayed-draw term loan.

Goldman Sachs Bank USA, TD Securities (USA) LLC, KKR Capital Markets, Citizens Bank and Fifth Third are the bookrunners on the deal.

Proceeds will be used to refinance existing debt and for general corporate purposes.

The company announced last month that it is getting an investment from KKR and a new investment from its current investor Oak Hill Capital.

Closing is expected in the third quarter, subject to regulatory approvals and other customary conditions.

MetroNet is an Evansville, Ind.-based provider of fiber optic high-speed broadband services.

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