Hawaiian Telcom Communications entered into a credit agreement with CoBank as administrative agent, an issuing lender, a joint lead arranger, bookrunner and swing line lender, and Fifth Third Bank and MUFG Union Bank, each as a joint lead arrangers and co-syndication agents.
First Hawaiian Bank is one of the lenders under the agreement with an approximate 5.7% pro rata share of the total credit commitment and loan.
The credit agreement provides for a delayed draw term loan A commitment of $320 million – consisting of a term loan A-1 commitment in the principal amount of up to $90 million and a term loan A-2 commitment in the principal amount of $230 million – and a revolving loan commitment of up to $30 million.
The credit agreement also includes an incremental term loan option that allows Hawaiian Telcom to increase the aggregate loan commitment by up to an additional $100 million, letters of credit of up to $5 million and a swing line facility of up to $5 million, subject in each case to the satisfaction of certain conditions.
Hawaiian Telcom can draw upon the term A loans in a single advance between May 4, 2017 and May 31, 2017. The term A loans bear interest at either the LIBOR rate or the base rate, in each case plus the applicable margin, which varies depending on whether the total debt to consolidated EBITDA ratio is less than 2.25x, or equal to or greater than 2.25x.
All obligations are guaranteed by the company and the borrower’s material subsidiaries, and are secured by a first priority lien on, among other things accounts, contracts, equipment and inventory, 100% of the equity interests in the company’s subsidiaries, substantially all of the personal property and intangibles of the borrower and the subsidiary guarantors, including intellectual property, cash and cash equivalents, and all of the material owned and leased real property and fixed assets, subject in each case to the exclusion of specified assets.