Windstream cuts spread on $500 million term loan to Libor plus 250 bps

By Sara Rosenberg

New York, March 5 – Windstream Services LLC reduced pricing on its $500 million debtor-in-possession covenant-light term loan to Libor plus 250 basis points from talk in the range of Libor plus 275 bps to 300 bps, according to a market source.

The term loan still has no Libor floor, an original issue discount of 99.5, 101 call protection during the first six months and no amortization.

The company’s $1 billion 24-month DIP facilities (//BBB-) also include a $500 million revolver.

Under the DIP terms, the company has full discretion to use asset sales proceeds, up to a total amount of $25 million per fiscal year, for general corporate purposes.

The company must provide financial statements quarterly, annually audited, and a rolling 13-week cash forecast, updated every four weeks with a budget variance/reconciliation report.

Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, Barclays and Deutsche Bank Securities Inc. are the lead arrangers on the deal. Citi is the administrative agent.

Commitments continue to be due at noon ET on Wednesday, the source added.

Proceeds will be used for general corporate purposes, adequate protection payments and restructuring expenses.

Windstream is a Little Rock, Ark.-based telecommunications provider. The company filed bankruptcy on Feb. 25 under Chapter 11 case number 19-22312.

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