Northwest Fiber talks $250 million eight-year notes with 10¾% coupon at 98; pricing Thursday

By Paul A. Harris

Portland, Ore., May 21 – Northwest Fiber LLC, which does business as Ziply Fiber, talked its $250 million offering of eight-year senior notes (Caa1/CCC) with a coupon in the 10¾% area at an issue price of 98, according to market sources.

In a structural change the call premiums were reduced. The notes become callable in three years at par plus 50% of the coupon, decreased from 75%. Subsequent annual premiums were reduced to 25% from 50% and to par from 25%.

Books close at noon ET on Thursday, and the deal is set to price thereafter.

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 feature a three-year 40% equity clawback and a 101% poison put.

The co-issuers are Northwest Fiber, LLC and Northwest Fiber Finance, Inc.

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.

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