Deutsche Bank and Bank of America last Tuesday launched syndication of a repricing for FairPoint Communications. Pricing on the $590 million term loan was dropped 25 basis points to LIBOR plus 1 3/4%. The LIBOR plus 2% pricing on the $100 million revolver did not change. Thomas H. Lee Partner and Kelso & Co. are the equity sponsors of the Charlotte, N.C.-based rural communication provider, which had EBITDA of $141.2 million in 2004.
The company took out the facility in February, when it did an initial public offering and paid off all of its high-yield pieces. Based on current market conditions, it approached the banks about a repricing, said John Crowley, executive v.p. and cfo. "The market is really hot. Now seemed like the right time," he said. The company recently completed the $9.3 million acquisition of Bentleyville Communications Corp., in which it used the revolver to finance the transaction.
Crowley said Deutsche Bank has led virtually every bank loan the company has done and "both [banks] have been supporters of us for a long time." The company said it plans to do more acquisitions in the future, but have not announced any. A call to Thomas H. Lee was not returned. Kelso declined comment.