RCN launches $130 million credit facility

By Sara Rosenberg

New York, April 28 - RCN Corp. held a conference call on Friday to launch its proposed $130 million credit facility (Ba3), according to a market source.

Deutsche Bank is the lead bank on the deal.

The facility consists of a $75 million term loan and a $55 million revolving credit facility, with both tranches talked at Libor plus 200 basis points, the source said.

Proceeds will be used to repay the approximately $35 million currently outstanding under the company's existing first-lien term loan and the approximately $40 million currently outstanding under its third-lien term loan, and to replace the existing letter-of-credit facilities that total about $55 million.

The deal is expected to close by the end of May.

RCN is a Princeton, N.J., provider of communications services.

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