Unite Private Networks reworks tranche sizes, updates pricing

By Sara Rosenberg

New York, Nov. 25 – Unite Private Networks downsized its five-year delayed-draw term loan to $100 million from $110 million, upsized its five-year first-lien term loan B to $102.5 million from $85 million and trimmed its six-year second-lien term loan to $40 million from $47.5 million, according to a market source.

Also, pricing on the first-lien term loan was reduced to Libor plus 425 basis points from Libor plus 450 bps, and the original issue discount was tightened to 99¼ from 99, the source said.

In addition, pricing on the second-lien term loan firmed at Libor plus 775 bps, the low end of the Libor plus 775 bps to 800 bps talk, the source said.

The first-lien term loan B still has a 1% Libor floor and 101 soft call protection for six months, and the second-lien term loan still has a 1% Libor floor, a discount of 98½ and call protection of 102 in year one and 101 in year two.

The company’s $272.5 million credit facility also includes a $30 million five-year revolver.

Pricing on the revolver and delayed-draw term loan remained at Libor plus 400 bps with no Libor floor.

Recommitments were due at the end of the day on Tuesday, the source added.

Allocations are expected after Thanksgiving and closing is targeted for Dec. 16.

SunTrust Robinson Humphrey Inc. and RBC Capital Markets LLC are the lead banks on the deal.

Proceeds will be used to refinance existing debt and for general corporate purposes, including potential acquisitions.

First-lien leverage is 4.3 times, up from 3.6 times previously, and total leverage is 6 times, up from 5.6 times. Net leverage is 2.9 times through the first-lien, up from 2.6 times under the original structure, and total net leverage is 4.6 times, unchanged from before.

Ridgemont Equity Partners is the sponsor.

Unite Private Networks is a Liberty, Mo.-based provider of high-bandwidth, fiber-based communications networks and related services to schools, governments, carriers, data centers, hospitals and enterprise business customers.

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