U.S. TelePacific ups term loan to $370 million, cuts pricing to Libor plus 725 bps

By Sara Rosenberg

New York, Feb. 11 - U.S. TelePacific increased its 51/2-year first-lien term loan to $370 million from $360 million and lowered pricing to Libor plus 725 basis points from Libor plus 750 bps, according to sources.

The term loan still includes a 2% Libor floor and 101 soft call protection for one year and is still being offered at an original issue discount of 98.

The now $395 million credit facility (B2/CCC+) also provides for a $25 million revolver.

Recommitments to the deal were due by the end of the day Thursday.

Credit Suisse, Deutsche Bank and Bank of America are the lead banks on the facility that will be used to refinance existing bank debt and add some cash to the balance sheet.

The extra funds raised from the term loan upsizing will be used for general corporate purposes and for additional liquidity, one source remarked.

U.S. TelePacific is a Los Angeles-based competitive local exchange carrier.

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