Northwest Fiber marketing $250 million offering of eight-year notes through Thursday

By Paul A. Harris

Portland, Ore., May 15 – Northwest Fiber, LLC and Northwest Fiber Finance, Inc. kicked off a $250 million offering of eight-year senior notes (Caa1/CCC) on Friday, according to market sources.

An investor conference call was scheduled for late Friday morning.

A one-on-one roadshow runs through Thursday, and the Rule 144A and Regulation S for life deal is set to price Thursday afternoon.

Initial talk has the deal coming in the low 11% area with 2 to 3 points of OID, traders said.

Credit Suisse Securities (USA) LLC is the left lead bookrunner. BofA Securities Inc., Deutsche Bank Securities Inc. and Goldman Sachs & Co. LLC are the joint bookrunners.

The notes become callable after three years at par plus 75% of the coupon. They feature a three-year 40% equity clawback and a 101% poison put.

Proceeds will be used for general corporate purposes, including the capital investment program.

The prospective issuer is an Everett, Wash.-based provider of residential and commercial communications services over a combined fiber- and copper-based network operating assets in Washington, Oregon, Idaho and Montana acquired from Frontier Communications Northwest. Northwest Fiber does business as Ziply Fiber.

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