Deutsche Bank and CIT launched a $200 million deal for Paetec last week to refinance debt, while also preparing for a proposed Initial Public Offering. Paetec is a competitive local exchange carrier. The new facility consists of a five-year, $40 million revolver and a six-year, $160 million term loan.
Pricing is LIBOR plus 3 1/2% on both tranches. According to a Securities and Exchange Commission filing, the company's old debt consisted of an eight-year, $100 million term loan and an eight-year, $55 million revolver.
According to Moody's Investors Service, the term loan can be upsized by as much as $50 million. The agency assigned a B2 rating to both the revolver and term loan. Keith Wilson, executive v.p. and cfo, did not return calls.