ITC^DeltaCom postpones $300 million two-tranche deal, cites "weaker market conditions"

By Paul A. Harris

St. Louis, March 23 - ITC^DeltaCom announced the withdrawal of its offering of $300 million of second priority senior secured notes (Caa2/CCC+) in a Tuesday press release.

"We initiated this transaction for the purpose of opportunistically refinancing our indebtedness with a combination of floating-rate and fixed-rate senior notes," stated Doug Shumate, the company's chief financial officer, in the release.

"However, generally weaker market conditions and a stronger preference among investors for fixed-rate notes made the refinancing unattractive at this time."

Although tranche sizes remained to be determined, the West Point, Ga. telecommunications and technology services company was offering seven-year non-call-four fixed-rate notes, which were being talked at a yield in the 11% area, and six-year non-call-two floating-rate notes, with price talk at Libor plus 700 basis points.

Banc of America Securities and Bear Stearns & Co. were joint bookrunners.

Proceeds from the sale were to have been used to repay approximately $281 million of bank debt and for general corporate purposes.

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