MegaPath launches $150 million term loan at discount of 98½

By Sara Rosenberg

New York, April 11 - MegaPath Corp. launched its $150 million six-year term loan on Wednesday morning with original issue discount talk of 981/2, according to a market source.

As was previously reported, pricing guidance on the term loan, as well as on a $25 million five-year revolver, is Libor plus 625 basis points with a 1.25% Libor floor.

Amortization on the term loan is 10% in year one with step-ups, and there is a 50% excess cash flow sweep included in the credit agreement.

Societe Generale is the lead bank on the $175 million credit facility.

Proceeds will be used to refinance existing bank debt.

Senior leverage is 2.1 times.

Commitments are due on April 26, the source added.

MegaPath is a provider of managed data, voice and security services.

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