U.S. TelePacific flexes $435 million term loan to Libor plus 450 bps

By Sara Rosenberg

New York, Feb. 17 - U.S. TelePacific lowered pricing on its $435 million six-year term loan to Libor plus 450 basis points from Libor plus 500 bps and is now selling the paper at par, instead of at a discount of 991/2, according to a market source.

As before, the loan has a 1.25% Libor floor and 101 soft call protection for one year.

The company's $460 million credit facility (B3/B-) also includes a $25 million five-year revolver.

Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Bank of America Merrill Lynch are the lead banks on the deal.

Proceeds will be used to refinance existing debt.

Early in 2010, the company got a $370 million 51/2-year first-lien term loan and a $25 million revolver.

Pricing on the existing term loan is Libor plus 725 bps with a 2% Libor floor, and it was sold at an original issue discount of 98. This tranche includes 101 soft call protection for one year, but since that is about to expire, lenders will be getting paid down at par when this new deal is done.

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

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