Bloomberg News

NewWave Said to Seek $134 Million in Loans for Dividend

October 28, 2011

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 fkhan33@bloomberg.net


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