FairPoint trims term B to $640 million, firms at Libor plus 625 bps

By Sara Rosenberg

New York, Feb. 11 - FairPoint Communications Inc. downsized its six-year term loan B to $640 million from $650 million and finalized pricing at Libor plus 625 basis points, the wide end of the Libor plus 600 bps to 625 bps talk, according to a market source.

The 1.25% Libor floor and original issue discount of 99 were unchanged.

In addition, call protection on the term loan B was changed to a hard call of 103 in year one, 102 in year two and 101 in year three from 101 soft call protection for one year, the source said.

The company's now $715 million senior secured credit facility (B2/B), down from $725 million, also includes a $75 million revolver.

Pricing on the revolver is Libor plus 550 bps.

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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