Data Transmission Network to launch $175 million credit facility Tuesday

By Sara Rosenberg

New York, Feb. 25 - Data Transmission Network Corp. is scheduled to hold a bank meeting Tuesday to launch its proposed $175 million credit facility, according to a market source.

Goldman Sachs is the lead bank on the deal.

The facility consists of a $20 million revolving credit facility and a $155 million term loan B, the source said.

Proceeds will be used to refinance existing bank debt and some junior subordinated debt.

On Friday, Moody's Investors Service assigned a B2 rating with a stable outlook to the senior secured credit facility.

"The ratings reflect DTN's high leverage, its shrinking subscriber count, the competitive pressure faced by each of its information services product offerings and the limited growth potential of its business model," Moody's said.

"Ratings are supported by the company's relatively low level of debt (which was substantially lightened following its 2003 bankruptcy), the diversification of DTN's product and customer base and the predictability of its subscription-based recurring revenues."

Data Transmission Network is an Omaha, Neb., provider of real-time information to agriculture, refined fuels, commodities trading and weather impacted businesses.

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