Western Wireless Corp.'s $975 million seven-year "B" loan dropped from 101 5/8-102 to 100 1/2-101 due to a potential $4 billion acquisition by Alltel Corp. "The debt was trading north of 101 before the news, but if it gets bought the debt gets repaid [at par]," a trader said.
Western Wireless also has a $225 million, six-year "A" loan and a $300 million revolver. Wachovia Securities is lead bank on the credit, which was installed last June to push out maturities and refinance debt (LMW, 6/18).
J.P. Morgan is syndication agent, while Deutsche Bank and Société Générale are documentation agents. The company's "A" and "B" loans are priced at LIBOR plus 2 1/4% and LIBOR plus 3%, respectively. Steve Winslow, Western Wireless' treasurer, could not be reached by press time. A spokesman for Alltel did not return calls.