Valor Communications credit facility set to launch June 1

By Sara Rosenberg

New York, May 25 - Valor Communications Group Inc.'s proposed senior secured credit facility is now set to launch on June 1, with the deal structure expected to contain a $790 million term loan and a revolving tranche, according to a market source.

As was previously reported, Banc of America Securities LLC and CIBC World Markets Corp. are joint lead arrangers and joint book-managers on the deal.

The revolver and a term loan are anticipated to have approximately five-year maturities and no amortization requirements.

The company is getting the new credit facility in connection with the initial public offering of its income deposit securities, for which an S-1 was filed with the Securities and Exchange Commission in April.

Security for the credit facility is expected to be a pledge of intercompany debt, 100% of the capital stock of wholly owned domestic subsidiaries and a security interest in substantially all other personal property, the filing said.

Proceeds from the IDS offering, a bond offering and the new credit facility will be used to repay all outstanding amounts under the existing credit facility, to repurchase all outstanding 10% senior subordinated notes held primarily by the company's equity sponsors, and to pay a distribution to the existing equity holders.

Valor is an Irving, Texas, provider of telecommunications services.

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