TeleGuam launches $170 million first- and second-lien credit facility

By Sara Rosenberg

New York, March 9 – GTA TeleGuam held a bank meeting on Thursday to launch a $170 million credit facility, according to a market source.

BNP Paribas Securities Corp. is the lead bank on the deal.

The facility consists of a $15 million five-year revolver, a $130 million six-year first-lien term loan and a $25 million seven-year second-lien term loan, the source said.

Price talk on the revolver is Libor plus 450 basis points to 475 bps with no floor, the first-lien term loan is talked at Libor plus 450 bps to 475 bps with a 1% Libor floor and an original issue discount of 99, and the second-lien term loan is talked at Libor plus 800 bps to 825 bps with a 1% Libor floor and a discount of 98, the source continued.

Included in the first-lien term loan is 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.

The credit agreement has a total net leverage covenant.

Commitments are due on March 23, the source added.

Proceeds will be used to help fund the buyout of the company by Huntsman Family Investments from Advantage Partners.

Closing is subject to federal and Guam regulatory approvals.

TeleGuam is a Tamuning, Guam-based provider of telecommunications services.

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