EarthLink driving by with $300 million seven-year notes Tuesday

By Paul A. Harris and Aleesia Forni

Virginia Beach, Va., May 14 - EarthLink Inc. is planning to sell $300 million seven-year senior secured notes during Tuesday's session, according to a market source.

An investor call was scheduled for 11 a.m. ET.

Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Jefferies & Co. are the joint bookrunners.

The Rule 144A and Regulation S with registration rights notes will be callable in three years at par plus 75% of the coupon.

The notes feature a three-year 35% equity clawback and a 101% poison put.

Proceeds will be used to refinance the Deltacom 10½% notes due 2016.

The network, communications and IT services provider is based in Atlanta.

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