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Credit Suisse Arranges $300MM Facility for Hawaiian Telecom

June 07, 2013, 08:01 AM
Filed Under: Communications

Hawaiian Telcom announced the closing of the refinancing of its existing senior secured credit facility. In connection with the refinancing, the company entered into a new $300 million senior secured credit facility maturing June 6, 2019. Pricing on the new term loan was set at LIBOR plus 4.00 percent with a LIBOR minimum of 1.00 percent, and sold at $99.5 per $100 of principal amount.

Credit Suisse Securities (USA) LLC was Sole Lead Arranger and Sole Bookrunner for the refinancing. Credit Suisse AG, Cayman Islands Branch is the Administrative Agent and Collateral Agent for the Lenders.

"We are very pleased to have closed this new credit facility, which significantly lowers our cost of debt, extends our debt maturity profile, and provides us with additional covenant flexibility," said Eric K. Yeaman, Hawaiian Telcom's president and CEO. "Furthermore, securing this financing underscores the continued confidence that our financial partners have in our business model and better positions us to execute on our strategic plan and drive long-term value for our shareholders," concluded Yeaman.

The proceeds from the new $300 million term loan were used, along with $5 million of existing cash, to pay off the Company's outstanding term loan, and to pay a prepayment penalty as well as closing costs and other third-party expenses related to the transaction.

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