Xplornet Communications accelerates timing on $225 million PIK notes, sets price talk

By Paul A. Harris

Portland, Ore., May 19 – Xplornet Communications, Inc. accelerated timing and set price talk for its $225 million offering of five-year senior PIK notes (Caa2/CCC) on Friday, according to a syndicate source.

Talk is 9¾% to 10% with a 100 basis points step-up for PIK payments.

Books close at 1 p.m. ET on Friday, and the Rule 144A and Regulation S for life deal is set to price thereafter. Previously the deal had been expected to remain in the market into 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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