Mountain Union Telecom wrapped up an $85 million senior secured credit facility with GE Commercial Finance Global Media & Communications that refinances debt and will be used to fund a combination of acquisitions and new construction.
The initial facility being refinanced was for $60 million and matured in Sept. 2006. "We thought it was a good time to extend maturity, expand capacity and adjust the terms to meet our business needs," said Lance Cawley, cfo. The company, which purchases and/or develops telecommunications towers, has 240 tower facilities within the continental United States and Puerto Rico.
GE is administrative agent and lead arranger for the facility, which consists of a $20 million six-and-a half year revolver, a $35 million term loan and a $30 million delayed-draw term loan. Both term loans are for seven-and-half years. The loan was originally offered at $75 million, but was increased to $85 million due to oversubscription. CIT was the syndication agent with Rabobank, Commerce Bank and Union Bank of California also participating.
Cawley said GE's knowledge of the industry led to its selection for the top job. "We had a relationship with GE for several years, as well as with CIT, and we went to other banks that know the industry," he said. Mark Bernier, senior v.p., Global Media & Communications, was Mountain's point man at GE. CIT was the lead arranger for the initial loan and although Cawley said the bank played a pivitol role, the company felt "GE was better suited" to lead this deal.