Consumer Cellular launches $500 million term loan at 99.27 OID

By Sara Rosenberg

New York, Feb. 1 – Consumer Cellular (CCI Buyer Inc.) held a lender call at 1 p.m. ET on Thursday to launch a fungible $500 million incremental term loan B due Dec. 17, 2027 (B1) that is talked with an original issue discount of 99.27, according to a market source.

Pricing on the incremental term loan is SOFR plus 400 basis points with a 0.75% floor.

The incremental term loan has 101 soft call protection for six months, the source said.

BofA Securities Inc., Barclays, UBS Investment Bank and Jefferies LLC are the arrangers on the deal.

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

Proceeds will be used to fund a distribution to the direct or indirect shareholders of CCI Buyer, to redeem in whole or in part certain outstanding preferred stock, and to pay related fees and expenses.

Consumer Cellular is a Scottsdale, Ariz.-based provider of postpaid virtual wireless services with a major focus on the senior demographic.

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