Xplornet starts roadshow for $225 million five-year PIK notes; pricing early next week

By Paul A. Harris

Portland, Ore., May 18 – Xplornet Communications, Inc. began a roadshow on Thursday in Toronto for a $225 million offering of five-year senior PIK notes (Caa2/CCC), according to a syndicate source.

The roadshow continues on Friday in New York.

The Rule 144A and Regulation S for life deal is set to price early in the week ahead.

SunTrust Robinson Humphrey Inc., BMO Securities and Jefferies LLC are the joint bookrunners.

The notes feature optional PIK interest payments during the first two years, at the issuer's discretion. They become callable after two years at par plus 50% of the coupon.

The Woodstock, New Brunswick-based rural-focused broadband service provider plans to use the proceeds, along with a $75 million term loan add-on, to refinance its 13% senior PIK notes and finance the acquisition of Canadian satellite capacity on the ViaSat-2 satellite.

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