Windstream lifts term loan B-4 size to $1 billion-$1.35 billion

By Sara Rosenberg

New York, Jan. 9 - Windstream Corp. increased the size of its seven-year term loan B-4 to the $1 billion to $1.345 billion area from $300 million, according to a market source.

In addition, the Libor floor is now talked at 0.75%, instead of at 0.75% to 1%, and the offer price is talked at 99¾ to par, versus earlier guidance of 991/2, the source said.

The spread was left at Libor plus 275 basis points, and there is still 101 soft call protection for one year.

Commitments are due on Thursday afternoon.

Bank of America Merrill Lynch, Barclays, Wells Fargo Securities LLC, Goldman Sachs & Co., Deutsche Bank Securities Inc., Bank of Tokyo-Mitsubishi UFJ, Morgan Stanley Senior Funding Inc. and SunTrust Robinson Humphrey Inc. are leading the deal. J.P. Morgan Securities LLC is the administrative agent.

Proceeds will be used to repay a term loan A-2, a term loan B-1 and, because of the upsizing, a term loan B-2, the source added. As of June 30, 2012, the company had $20.8 million of term loan A-2 debt due July 17, 2013, $282.4 million of term loan B-1 debt due July 17, 2013 and $1.048 billion of term loan B-2 debt due Dec. 17, 2015.

Closing is expected before the end of this month.

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

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