Integra Telecom mulls tap of 10¾% secured notes as new unsecured offering fails to get traction

By Paul A. Harris

Portland, Ore., May 25 - Integra Telecom Holdings, Inc. is contemplating an add-on to its 10¾% senior secured notes due April 15, 2016 because its new $260 million offering of unsecured notes has failed to achieve traction among investors, market sources say.

A roadshow for the new five-year unsecured notes (Caa2/CCC+/), which are non-callable for four years, began on May 17 and had been scheduled to price during the May 23 week.

J.P. Morgan Securities LLC and Morgan Stanley & Co. Inc. are the joint bookrunners.

Proceeds will be used to repay the company's existing credit facility and for general corporate purposes.

The existing 10¾% notes priced at par on April 9, 2010 in a $475 million issue, which was downsized from $500 million.

Those notes have a make-whole call at Treasuries plus 50 basis points until April 15, 2013 and then become callable at 105.375.

Integra Telecom is a Portland, Ore., fiber-based telecommunications carrier.

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