R.H. Donnelley sets Friday launch for $503 million term loan add-on

By Sara Rosenberg

New York, Nov. 1 - R.H. Donnelley Corp. has scheduled a Friday launch for its $503 million term loan B add-on that will be obtained under the Dex Media West credit facility, according to a market source.

The add-on will carry an interest rate of Libor plus 175 basis points, which is in line with existing B loan pricing.

The deal will be launched to existing lenders only.

JPMorgan is the left lead bank on the financing.

Proceeds will be used to help fund the acquisition of Dex Media Inc.

Under the terms of the agreement, each Dex share will be exchanged for $12.30 in cash and 0.24154 R.H. Donnelley shares. Current Dex shareholders will receive about $1.85 billion in cash and 36.4 million R.H. Donnelley shares, for total equity consideration of about $4.2 billion. R.H. Donnelley will also assume Dex's net debt outstanding, expected to be about $5.3 billion at year-end 2005.

The transaction is expected to be completed during the first quarter of 2006.

Cary, N.C.-based R.H. Donnelley is a Yellow Pages publisher and directional media company. Englewood, Colo.-based Dex provides print directories and internet-based local search services.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.