Richly Priced Wireless Deal Hits Mart
A richly priced deal for Microcell Telecommunications, a Canadian-wireless company, hit the market last week.
A richly priced deal for Microcell Telecommunications, a Canadian-wireless company, hit the market last week. J.P. Morgan and Credit Suisse First Boston launched syndication of a C$450 million deal comprising a six-year, C$50 million revolver; a six-year, C$150 million "A" loan; and a seven-year, second-priority C$250 million "B" loan. The revolver and "A" loan are priced at LIBOR plus 4%, while the "B" loan carries a spread of LIBOR plus 6%.
Proceeds will be used to repay existing bank debt and increase liquidity by about C$100 million. Microcell reorganized in April 2003 when it exchanged around C$2 billion of debt for C$635 million of debt and debt-like preferred shares as well as some equity. Microcell's "B" loan was trading in the 20s before popping to the 35-40 context in 2002 and was trading in the high 90s in December 2003 (LMW, 12/8). Thane Fotopoulos, director of investor relations, declined comment.