Airvana readies Friday bank meeting for $420 million term loan

By Sara Rosenberg

New York, March 2 - Airvana Corp. has scheduled a bank meeting for Friday morning in New York to launch a proposed $420 million four-year term loan, according to a market source.

Societe Generale and Macquarie are the joint bookrunners on the deal, with Societe Generale the left lead.

Price talk on the term loan is Libor plus 700 basis points to 725 bps with a 1.5% Libor floor and an original issue discount of 99, the source said.

The term loan includes 101 soft call protection for one year and 15% annual amortization.

The deal will be publicly rated.

Proceeds will be used to refinance an existing term loan that was obtained in August 2010 and fund a dividend payment.

At close last year, the term loan was sized at $360 million and priced at Libor plus 900 bps with a 2% Libor floor. It was sold at an original issue discount of 98 and used for a dividend recapitalization.

Total leverage is 1.8 times and EBITDA is around $234 million versus $165 million at the time of the last transaction.

Airvana is a Chelmsford, Mass.-based provider of mobile broadband network infrastructure products.

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