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CCGI Holding to launch $275 million credit facility on Thursday
By Sara Rosenberg
New York, Sept. 20 - CCGI Holding is scheduled to hold a bank meeting on Thursday morning to launch its proposed $275 million credit facility, according to a market source.
Jefferies and UBS are the lead banks on the deal.
The facility consists of a $25 million five-year revolver and a $250 million six-year term loan, the source said.
CCGI was formed through the recent merger of Covad Communications Group, MegaPath and Speakeasy. Since 2008, Covad's EBITDA margins have expanded by 400 basis points as a result of operational improvements.
The companies' existing debt was left outstanding in connection with the merger, so now this new deal is being done to refinance that existing debt.
Total leverage before merger synergies is 3.1 times and including synergies is 2.0 times.
CCGI is a San Jose, Calif.-based provider of IT broadband and telecommunications services to small- and medium-sized businesses.
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