Time Warner Telecom sets Tuesday launch for $700 million facility

By Sara Rosenberg

New York, Sept. 8 - Time Warner Telecom Holdings Inc. has scheduled a bank meeting for Tuesday to launch its proposed $700 million secured credit facility, according to a market source.

Wachovia is the lead bank on the deal.

As was previously reported, the facility consists of a $100 million revolver and a $600 million term loan B.

Proceeds from the term loan will be used to refinance $440 million of secured indebtedness and partially finance the cash portion of the consideration for the acquisition of Xspedius Communications, LLC.

Revolver borrowings will be available for general corporate purposes.

Following the closing of the term loan, the company intends to call for redemption the entire $240 million principal amount of second-lien floating-rate notes due 2001.

Time Warner Telecom is a Littleton, Colo., provider of managed network services.

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