Windstream trims spread on $600 million term B-3 to Libor plus 300 bps

By Sara Rosenberg

New York, Aug. 2 - Windstream Corp. reduced pricing on its $600 million seven-year term loan B-3 to Libor plus 300 basis points from talk of Libor plus 325 bps to 350 bps, according to a market source.

As before, the loan has a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for one year.

Recommitments were due at 3 p.m. ET on Thursday, the source said.

Allocations are expected on Friday.

The company's $900 million of new term loan debt (Baa3/BB+) also includes a $300 million five-year term loan A-4 priced at Libor plus 225 bps (subject to a grid) with no Libor floor.

J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Barclays, Citigroup Global Markets Inc., CoBank, Goldman Sachs & Co., Morgan Stanley Senior Funding Inc., RBC Capital Markets LLC, RBS Securities Inc., SunTrust Robinson Humphrey Inc., Union Bank of California and Wells Fargo Securities LLC are the lead banks on the deal.

Proceeds will be used to repay existing revolver debt and for working capital needs.

Windstream is a Little Rock, Ark.-based provider of advanced communications and technology solutions, including managed services and cloud computing.

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