By Paul A. Harris
Portland, Ore., Oct. 17 – Xplornet Communications Inc. priced an upsized $30 million add-on to its 9 5/8%/10 5/8% senior PIK notes due June 1, 2022 (Caa2/CCC) at 103.5 on Tuesday, according to a syndicate source.
The issue size was increased from $25 million.
The reoffer price came at the rich end of the 103 to 103.5 price talk.
SunTrust Robinson Humphrey Inc., BMO Securities and Jefferies LLC were the joint bookrunners.
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 additional proceeds resulting from the $5 million upsizing of the deal, along with a $5 million upsize to the company's term loan, will be used for general corporate purposes which may include refinancing the 2009 credit facility
| Issuer: | Xplornet Communications Inc.
|
| Face amount: | $30 million, increased from $25 million
|
| Proceeds: | $31.05 million
|
| Maturity: | June 1, 2022
|
| Securities: | Senior PIK notes
|
| Left bookrunner: | SunTrust Robinson Humphrey Inc.
|
| Joint bookrunners: | BMO Securities, Jefferies LLC
|
| Cash coupon: | 9 5/8%
|
| PIK coupon: | 10 5/8% until June 1, 2019, cash thereafter
|
| Price: | 103.5
|
| Trade date: | Oct. 17
|
| Settlement date: | Oct. 31 with accrued interest
|
| Ratings: | Moody's: Caa2
|
| S&P: CCC
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 103 to 103.5
|
| Marketing: | Quick to market
|
| Original issue: | $230 million priced at par on May 19, 2017
|
| Fungibility: | Add-on notes to become immediately fungible with original notes
|
| Total issue size: | $260 million
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
