Cellular South finalizes pricing on $600 million term loan B

By Sara Rosenberg

New York, June 29 - Cellular South Inc. set pricing on its $600 million six-year term loan B at Libor plus 350 basis points with a 1% Libor floor versus initial talk of 1% to 1.25%, and an original issue discount of 991/2, according to a market source.

As before, the term loan B includes 101 soft call protection for one year.

The company's $800 million credit facility also has a $200 million five-year revolver priced at Libor plus 250 bps with a 50 bps unused fee.

Bank of America Merrill Lynch is the lead bank on the deal.

Financial covenants include a maximum senior secured leverage ratio of 4.5 times with step-downs and a maximum total leverage ratio of 5.5 times. There is also a minimum fixed-charge coverage ratio of 2.0 times, but that only applies to the revolver.

Proceeds will be used to refinance existing debt, pay a $20 million dividend as well as for general corporate purposes.

Closing is expected to occur in July.

Cellular South is a Ridgeland, Miss.-based privately held wireless provider.

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