Hargray launches $60 million incremental term loan at 99.75 OID

By Sara Rosenberg

New York, Feb. 15 – Hargray Communications Group Inc. launched on Thursday its fungible $60 million incremental covenant-light first-lien term loan B due May 2024 with original issue discount talk of 99.75, according to a market source.

The incremental loan has a ticking fee of half the margin from days 31 to 90 and the full margin thereafter, the source said.

Pricing on the incremental loan is Libor plus 300 basis points with a 25 bps step-down at 4.75 times first-lien leverage and a 1% Libor floor, in line with existing term loan pricing.

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

Proceeds will be used to fund a tuck-in acquisition.

Commitments are due at noon ET on Friday.

Expected term loan ratings are B2/B+.

Hargray is a Hilton Head Island, S.C.-based broadband communications and entertainment provider.

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