Iowa Telecommunications new $75 million term loan to be priced at Libor plus 200 bps

By Sara Rosenberg

New York, March 2 - Iowa Telecommunications Services Inc.'s proposed $75 million term loan due November 2011 is expected to carry pricing of Libor plus 200 basis points, according to a 10-K filed with the Securities and Exchange Commission on Monday.

Previously, the company disclosed that Rural Telephone Finance Cooperative is the arranger on the deal and has provided a commitment to fully fund the loan if necessary.

Proceeds will be used to fund the $80.6 million acquisition of Sherburne Tele Systems Inc., a Big Lake, Minn.-based telecommunications company.

Other financing for the acquisition will come from borrowings under the company's existing revolving credit facility and cash on hand.

Iowa Telecommunications is a Newton, Iowa-based telecommunications service provider.

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