Xplornet to price $25 million tap of PIK notes due 2022 on Tuesday

By Paul A. Harris

Portland, Ore., Oct. 17 – Xplornet Communications Inc. plans to price a $25 million add-on to its 9 5/8%/10 5/8% senior PIK notes due June 1, 2022 (expected ratings Caa2/CCC) on Tuesday, according to a syndicate source.

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

The Rule 144A and Regulation S for life notes are being marketed by means of an internet roadshow.

The notes feature a make-whole call at Treasuries plus 50 basis points until June 1, 2019, then become callable at 104.813.

The Woodstock, N.B.-based rural-focused broadband service provider plans to use the proceeds, in addition to a $25 million add-on to its term loan B, to finance the acquisition of internet business assets in Canada.

The original $230 million issue priced at par on May 19, 2017.

The add-on notes will immediately become fungible with the original notes.

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