Daily News: June 7, 2013

Credit Suisse Arranges Hawaiian Telcom Debt Refinancing

Hawaiian Telcom Holdco announced the closing of the refinancing of its existing senior secured credit facility. In connection with the refinancing, the company entered into a new $300 million senior secured credit facility maturing June 6, 2019. Pricing on the new term loan was set at LIBOR plus 4% with a LIBOR minimum of 1%.

The proceeds from the new $300 million term loan were used, along with $5 million of existing cash, to pay off the company’s outstanding term loan, and to pay a prepayment penalty as well as closing costs and other third-party expenses related to the transaction.

With respect to the new senior secured credit facility: Credit Suisse Securities (USA) was sole lead arranger and sole bookrunner for the refinancing. Credit Suisse AG, Cayman Islands Branch is the administrative agent and collateral agent for the lenders.

“We are very pleased to have closed this new credit facility, which significantly lowers our cost of debt, extends our debt maturity profile, and provides us with additional covenant flexibility,” said Eric K. Yeaman, Hawaiian Telcom’s president and CEO. “Furthermore, securing this financing underscores the continued confidence that our financial partners have in our business model and better positions us to execute on our strategic plan and drive long-term value for our shareholders,” concluded Yeaman.

Hawaiian Telcom Holdco, headquartered in Honolulu, is a provider of integrated communications solutions for business and residential customers.