JPMorgan is prepping a $503 million incremental term loan "B" for R.H. Donnelley Corp. to refinance debt and partially fund the company's acquisition of Dex Media. The loan will be priced at LIBOR plus 1 3/4%, the same pricing as the existing term loan "B." It is expected to hit the market sometime this week. "Dex Media has done well so far in the bank loan market, so I can't imagine they would have trouble," said one investor about the deal. "It's just making sure you are getting the right price."
According to releases put out by the two companies, the combined business will be the third largest print and Internet directory publisher in the U.S. with pro forma annual revenues of over $2.7 billion. It will operate across 28 states with a total circulation of 73 million. Jim Grufkin, associate v.p. of finance and investor relations at R.H. Donnelley, could not be reached nor could a spokeswoman for Dex.