Hawaiian Telcom talks $550 million three-part deal; pricing Tuesday

By Paul A. Harris

St. Louis, April 25 - Hawaiian Telcom Communications, Inc. issued price talk on Monday for its $550 million three-tranche offering of high-yield notes (B-), according to a syndicate source.

Pricing is expected on Tuesday.

The company is talking its tranche of eight-year senior floating-rate notes, which are non-callable for two years, at six-month Libor plus 475 to 500 basis points.

Meanwhile, its eight-year senior fixed-rate notes that are non-callable for four years are talked to yield 9% to 9¼%.

The company is also selling 10-year senior subordinated notes, which are talked at 150 basis points behind the senior fixed-rate notes. The notes are non-callable for five years.

Goldman Sachs has the physical books for the Rule 144A/Regulation S with registration rights offering. JP Morgan and Lehman Brothers are joint bookrunners. The co-managers are ABN Amro and Wachovia Securities.

Proceeds will be used to help fund the Carlyle Group's $1.65 billion acquisition of Verizon Hawaii from Verizon Communications Inc.

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