Bloomberg News

Hawaiian Telcom Said to Host Lender Call Tomorrow for Term Loan

February 07, 2012

Feb. 6 (Bloomberg) -- Hawaiian Telcom Holdco Inc, the long- distance telephone and internet access provider, is said to host a lender call tomorrow to discuss a $300 million loan to refinance debt, according to a person with knowledge of the deal.

Credit Suisse AG is arranging the five-year transaction, which pays interest at 5.75 percentage points more than the London interbank offered rate and the lending benchmark will have a 1.25 percent floor, said the person, who declined to be identified because the terms are private.

Hawaiian Telcom may sell the debt at 98.5 cents on the dollar, the person said, reducing proceeds for the borrower and boosting the yield for investors.

Lenders will receive soft-call protection of 102 cents and 101 cents, the person said, meaning Hawaiian Telcom would have to pay two cents more than face value to reprice the debt in its first year and one cent more than face value in its second year.

Lenders must submit commitments by Feb. 22, the person said.

To contact the reporter on this story: Krista Giovacco in New York at kgiovacco1@bloomberg.net

To contact the editor responsible for this story: Faris Khan at fkhan33@bloomberg.net


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