NewWave shifts funds among first- and second-lien loans, cuts pricing

By Sara Rosenberg

New York, April 11 - NewWave Communications upsized its first-lien term loan to $148.5 million and downsized its second-lien term loan to $57.75 million from $66 million, according to a market source.

Also, pricing on the first-lien term loan was reduced to Libor plus 400 basis points from talk of Libor plus 450 bps to 475 bps, the Libor floor was trimmed to 1% from 1.25%, the original issue discount was tightened to 99½ from 99 and the 101 soft call protection was shortened to six months from one year, the source said.

Meanwhile, pricing on the second-lien term loan was cut to Libor plus 800 bps from Libor plus 850 bps, the floor was reduced to 1% from 1.25%, the discount was revised to 99 from 98½ and the call protection was changed to 102 in year one and 101 in year two from 103 in year one, 102 in year two and 101 in year three, the source continued.

The $221.25 million credit facility also includes a $15 million revolver.

SunTrust Robinson Humphrey Inc. and Goldman Sachs Bank USA are the joint lead arrangers and bookrunners on the deal for which no formal bank meeting was held.

Proceeds will be used to help fund the buyout of the company by GTCR from Pamlico Capital.

First-lien leverage is 4.5 times, up from 4.25 times at launch, and total leverage is unchanged at 6.25 times, the source added.

Allocations will likely go out next week, and closing is targeted for April 30.

NewWave is a Sikeston, Mo.-based broadband/cable company providing television, high-speed internet and digital telephone services.

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