FairPoint launches $650 million term loan at Libor plus 600-625 bps

By Sara Rosenberg

New York, Jan. 31 - FairPoint Communications Inc. launched with a bank meeting on Thursday its $650 million six-year term loan B with price talk of Libor plus 600 basis points to 625 bps with a 1.25% Libor floor and an original issue discount of 99, according to a market source.

The loan has 101 soft call protection for one year, the source said.

The company's $725 million senior secured credit facility (B2) also includes a $75 million revolver.

Commitments are due at 5 p.m. ET on Feb. 7.

Morgan Stanley Senior Funding Inc., Credit Suisse Securities (USA) LLC and Jefferies & Co. are leading the deal.

Proceeds will be used to refinance existing bank debt, including a roughly $955 million term loan.

Other funds for the refinancing will come from $300 million of senior secured notes and cash on hand.

FairPoint is a Charlotte, N.C.-based communications provider of broadband internet access, local and long-distance phone, television and other high-capacity data services.

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