U.S. TelePacific launches $360 million term at Libor plus 750 bps

By Sara Rosenberg

New York, Jan. 28 - U.S. TelePacific launched its proposed $360 million 51/2-year first-lien term loan on Thursday with price talk of Libor plus 750 basis points with a 2% Libor floor, according to market sources.

The original issue discount on the term loan is being talked at 98, and there is 101 soft call protection for one year, sources said.

The $385 million credit facility (B2/CCC+) also includes a $25 million revolver.

Originally, the deal was supposed to launch on Wednesday, but that meeting was postponed. Speculation is that the delay was a result of some surprise over the Standard & Poor's rating.

Credit Suisse, Deutsche Bank and Bank of America are the lead banks on the deal.

Proceeds will be used to refinance the company's existing credit facility and add some cash to the balance sheet.

U.S. TelePacific is a Los Angeles-based competitive local exchange carrier.

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