Feb. 27 (Bloomberg) -- Bragg Communications Inc., a provider of television and telephone services, cut the interest rate it will pay on a $300 million term loan B it’s seeking to refinance debt, according to a person with knowledge of the transaction.
The loan was decreased to $300 million from $400 million and will pay interest at 3 percentage points more than the London interbank offered rate, down from 3.25 percentage points, said the person, who declined to be identified because the terms are private. The minimum on the lending benchmark will remain unchanged at 1 percent.
Bragg Communications is proposing to sell the debt at 99.25 cents on the dollar, up from 99 cents, said the person. The discount lowers proceeds for the company and boosts the yield to investors.
Lenders are being offered one-year soft-call protection of 101 cents, meaning the company would have to pay 1 cent more than face value to refinance the debt during the first year, according to data compiled by Bloomberg.
TD Securities Inc., the investment-banking arm of Toronto Dominion Bank, is arranging the financing, the data shows.
The Halifax, Nova Scotia-based company is also seeking a $1.3 billion term loan A that was increased from $1.2 billion and a $150 million revolving line of credit, the person said. Both the term loan A and revolver mature in five years and will be denominated in Canadian dollars, the data shows.
Jill Laing, a spokeswoman for Bragg Communications, didn’t immediately respond to an e-mail seeking comment.
A term loan A is sold primarily to banks, while so-called B loans are mainly bought by non-bank lenders such as collateralized loan obligations, mutual funds and hedge funds. In a revolving credit facility, money can be borrowed again once it’s repaid; in a term loan, it can’t.
--Editors: Faris Khan, Chapin Wright
To contact the reporter on this story: Michael Amato in New York at firstname.lastname@example.org
To contact the editor responsible for this story: Faris Khan at email@example.com