Hargray to launch $53 million tack-on loan, amendment on Wednesday

By Sara Rosenberg

New York, Oct. 14 – Hargray Communications is set to hold a conference call at 12:30 p.m. ET on Wednesday to launch a fungible $53 million first-lien tack-on term loan due June 2019, according to a market source.

Credit Suisse Securities (USA) LLC is the lead bank on the deal.

Price talk on the tack-on term loan is Libor plus 425 basis points with a 1% Libor floor and an original issue discount of 99, the source said.

Also, with the tack-on, the company is offering to lift pricing on its existing $301 million first-lien term loan to Libor plus 425 bps with a 1% Libor floor from Libor plus 375 bps with a 1% Libor floor, the source continued.

All of the first-lien term loan debt will have 101 soft call protection for one year and a maximum total net leverage covenant.

Proceeds from the tack-on will be used to fund a dividend to shareholders.

Commitments are due on Oct. 22.

Hargray is a Hilton Head Island, S.C.-based provider of triple-play data, video and voice services.

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