Unite Private Networks to launch $272.5 million facility on Thursday

By Sara Rosenberg

New York, Nov. 6 – Unite Private Networks is scheduled to hold a bank meeting on Thursday to launch a $272.5 million credit facility, according to market sources.

SunTrust Robinson Humphrey Inc. and RBC Capital Markets LLC are the lead banks on the deal.

The facility consists of a $30 million five-year revolver, a $110 million five-year delayed-draw term loan, an $85 million five-year first-lien term loan B and a $47.5 million six-year second-lien term loan, sources said.

Price talk on the revolver and delayed-draw term loan is Libor plus 400 basis points with no Libor floor, talk on the term loan B is Libor plus 450 bps with a 1% Libor floor and an original issue discount of 99, and talk on the second-lien term loan is Libor plus 775 bps to 800 bps with a 1% Libor floor and a discount of 98½, sources continued.

The term loan B has 101 soft call protection for six months and the second-lien term loan has call protection of 102 in year one and 101 in year two.

Commitments are due on Nov. 20.

Proceeds will be used to refinance existing debt and for general corporate purposes, including potential acquisitions.

First-lien leverage is 3.6 times and total leverage is 5.6 times, sources added.

Ridgemont Equity Partners is the sponsor.

Unite Private Networks is a Liberty, Mo.-based provider of high-bandwidth, fiber-based communications networks and related services to schools, governments, carriers, data centers, hospitals and enterprise business customers.

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