Hawaiian Telecom structure surfaces on $875 million credit facility

By Sara Rosenberg

New York, April 5 - The structure on Hawaiian Telecom's proposed $875 million credit facility emerged Tuesday with the deal expected to consist of a $400 million term loan B, a $175 million revolver and a $300 million term loan A, according to a market source.

The term loan B is talked in the Libor plus 225 basis points area, the source added.

JPMorgan, Goldman Sachs and Lehman Brothers are the lead banks on the deal that is set to launch via a bank meeting on Thursday, with JPMorgan the left lead.

Proceeds will be used to help fund The Carlyle Group's $1.65 billion acquisition of Verizon Hawaii from Verizon Communications Inc.

Under the LBO agreement, which was announced around mid-year 2004, Carlyle will acquire Verizon's Hawaii-based local telephone operations as well as the print directory, long distance and internet service provider operations; Verizon Wireless is not included in the transaction.

The closing of the transaction is contingent on approvals from the Hawaii Public Utilities Commission, the Federal Communications Commission and the U.S. Department of Justice, and on the successful obtainment of the proposed financing.

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