Dex Media East planning to get new $1.2 billion credit facility

By Sara Rosenberg

New York, Oct. 2 - Dex Media East LLC is looking to get a new $1.2 billion credit facility, although commitments from potential lenders have not yet been obtained, according to a company news release.

The company expects that its proposed credit facility would consist of a $100 million revolver, a $750 million six-year term loan A and a $350 million seven-year term loan B.

Proceeds will be used to refinance its existing credit facility.

In addition, parent company R.H. Donnelley Corp. announced that it plans to sell an additional $500 million of its 8 7/8% series A-4 senior notes due 2017 to certain institutional investors.

Proceeds from this offering would be used to repay a portion of the term loans outstanding under the existing Dex Media East credit facility and to repay a portion of the term loans outstanding under the R.H. Donnelley Inc. credit facility.

In order for the proceeds to be used by Dex Media East, R.H. Donnelley must obtain the consent of required lenders holding a majority of the aggregate amount of the outstanding debt and commitments under the existing Dex Media East credit facility, and obtain fairness opinions with respect to the indentures governing the outstanding notes issued by Dex Media East and Dex Media, Inc.

Dex Media is a publisher of Yellow Pages and White Pages directories. R.H. Donnelley is a Cary, N.C., Yellow Pages and online local commercial search company.

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