Choice Cable upsizes second-lien term loan to $41.5 million

By Sara Rosenberg

New York, May 27 - Choice Cable increased its five-year second-lien term loan to $41.5 million from $33.5 million due to oversubscription, according to a market source.

Pricing on the second-lien loan remained at Libor plus 850 basis points with a 1% Libor floor and an original issue discount of 981/2, and there is still call protection of 102 in year one and 101 in year two.

SunTrust Robinson Humphrey Inc. is the lead bank on the deal.

Proceeds will be used to fund a dividend.

Leverage is 5.45 times, up from 5.25 times prior to the upsizing, the source said.

With this transaction, the company is seeking an amendment to its existing credit facility to allow for the new second-lien term loan and to revise covenants.

First-lien lenders are being asked to reapprove the amendment by the end of the day on Wednesday, the source added.

A 25 bps amendment fee is being offered to first-lien lenders.

Choice Cable is a Puerto Rico-based cable operator.

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