Xplornet driving by with $30 million tap of PIK notes due 2022

By Paul A. Harris

Portland, Ore., April 26 – Xplornet Communications, Inc. plans to price a $30 million add-on to its 9 5/8%/10 5/8% senior PIK notes due June 1, 2022 (expected ratings Caa2/CCC) in a quick-to-market Friday trade, according to a syndicate source

The deal is talked at an issue price of 99.06 plus the PIK accrual to May 1, 2019, which is the fungibility level.

SunTrust Robinson Humphrey Inc. is the left bookrunner. BMO Securities and Jefferies LLC are the joint bookrunners.

The Rule 144A for life notes become callable after June 1, 2019 at 104.813.

Proceeds will be used to fund the acquisition of certain spectrum licenses.

The prospective issuer is Canada's largest rural-focused broadband internet provider.

The original $230 million issue priced in May 2017. A previous $30 million add-on priced in October 2017.

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