Bragg shifts funds between tranches, cuts term loan B pricing

By Sara Rosenberg

New York, Feb. 24 - Bragg Communications Inc. upsized its five-year term loan A to roughly C$1.3 billion from C$1.2 billion and downsized its six-year term loan B to $300 million from $400 million, according to a market source.

In addition, pricing on the term loan B was lowered to Libor plus 300 basis points from Libor plus 325 bps, and the original issue discount was tightened to 99¼ from 99, the source said.

As before, the term loan B has a 1% Libor floor and 101 soft call protection for one year.

The company's roughly C$1.75 billion senior secured credit facility (BB) also includes a C$150 million five-year revolver.

The revolver and term loan A are priced at BA plus 300 bps. The spread can range from BA plus 200 bps to 350 bps based on leverage. The revolver has an unused fee that is 25% of the drawn margin.

TD Securities (USA) LLC, CIBC World Markets Corp., BMO Capital Markets Corp. and RBC Capital Markets LLC are the lead banks on the deal.

Proceeds will be used to refinance existing debt and fund a dividend.

Bragg Communications is a Halifax, N.S.-based cable television and telecommunications company.

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