Omaha, Neb.-based infoUSA recently restructured its $110 million credit facility, increasing the loan to $145 million in conjunction with a plan to redeem a portion of its 91/2% senior subordinated notes. The company wanted to take the opportunity to buy back its bonds to save on interest costs, explained Stormy Dean, infoUSA's cfo. The company has approximately $92 million of 91/2% senior subordinated notes outstanding. While infoUSA has been buying back notes on the open market, it has yet to make a decision on the total amount that the company will call, noted Dean.
The new $145 million facility comprises a $45 million revolver and a $100 million term loan. The facility replaces the former $18 million revolver, $47 million term loan "A" and the $45 million "B" loan, which infoUSA completed in March 2002. But the company paid down a significant amount of the credit over the last year, said Dean. infoUSA had $62 million outstanding on its previous credit facility at the time of the recent restructuring, but Dean declined to elaborate on the sizes of each tranche when it was refinanced.
Both tranches on the new facility are priced at LIBOR plus 4%. This pricing compares with the LIBOR plus 23/4% on the former pro rata and LIBOR plus 3% on the former "B" tranche. Dean attributed the increase in price to the larger facility size as well as the current market conditions. Bank of America led the company's previous facility, and according to infoUSA's most recent 10-Q, the company was in negotiations with the firm for the increase to the credit. But Dean declined to comment on which banks lead the new credit.