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Windstream launches $300 million term B-4 at Libor plus 275 bps
By Sara Rosenberg
New York, Jan. 8 - Windstream Corp. held a call on Tuesday to launch a $300 million seven-year term loan B-4 that is talked at Libor plus 275 basis points with a 0.75% to 1% Libor floor and an original issue discount of 991/2, according to sources.
The loan includes 101 soft call protection for one year, sources said.
Bank of America Merrill Lynch, Barclays, Wells Fargo Securities LLC, Goldman Sachs & Co., Deutsche Bank Securities Inc., Bank of Tokyo-Mitsubishi UFJ, Morgan Stanley Senior Funding Inc. and SunTrust Robinson Humphrey Inc. are leading the deal.
Proceeds will be used to repay term loans that mature this year. As of June 30, 2012, the company had $20.8 million of term loan A-2 debt due on July 17, 2013 and $282.4 million of term loan B-1 debt due on July 17, 2013.
Closing is expected before the end of this month.
In addition, the company announced plans for a private placement of $700 million of senior notes due 2023 that will be used to tender for its $650 million 8 7/8% senior secured notes due 2017.
And, the company said in a news release that it has a $1.25 billion undrawn revolver available as an option to repay its $800 million in senior notes that mature this year.
"Collectively, the debt transactions announced today improve our liquidity position and lower our cost of capital, positioning us very well from a balance sheet perspective as we enter 2013," said Tony Thomas, chief financial officer and treasurer, in the release.
Windstream is a Little Rock, Ark.-based provider of advanced network communications, including cloud computing and managed services, to businesses.
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