Credit Suisse and Bank of America this week are expected to launch syndication of a $305 million credit backing TelePacific Communications' acquisition of Mpower Communications. The deal consists of a $30 million senior secured revolver, a $175 million first-lien term loan and a $100 million second-lien term loan. Pricing on the deal has not yet been determined.
Moody's Investors Service rated the revolver and first lien B2. The ratings reflect the company's growth plans, elimination of merger synergies, free cash flow generation and the potential to deleverage soon, according to a Moody's report.
California-based TelePacific provides business telecommunication network solutions. Mpower is a facilities-based communications provider of broadband data and voice communications services. A stockholder meeting is set for August 2 at the Benjamin Hotel in New York for final approval of the merger.
TelePacific tapped Credit Suisse in January for an $80 million credit facility, consisting of a $10 million revolver and a $70 million term loan that was used to repay existing bank debt. Calls to Tim Medina, cfo of TelePacific, were not returned, nor were calls to officials at Mpower.