Oct. 28 (Bloomberg) -- NewWave Communications Inc., a provider of broadband services, is seeking $134 million in loans to support its dividend recapitalization, according to a person with knowledge of the transaction.
The five-year debt will include a $100 million term loan and a $34 million revolving line of credit that was decreased from $40 million, said the person, who declined to be identified because the terms are private.
NewWave, based in Sikeston, Missouri, will pay 4 percentage points more than the London interbank offered rate, the person said. Leverage, or debt to earnings before interest, taxes, depreciation and amortization, will be 4.6 times on a senior basis, the person said.
GE Capital Markets, the lending unit of General Electric Co. arranged the deal for the Pamlico Capital portfolio company.
An e-mail sent to NewWave seeking comment wasn’t returned.
In a revolving credit facility, money can be borrowed once it’s repaid; in a term loan, it can’t.
--Editors: Chapin Wright, Faris Khan
To contact the reporter on this story: Michael Amato in New York at Mamato3@bloomberg.net
To contact the editor responsible for this story: Faris Khan at firstname.lastname@example.org