A small piece of Broadwing's "B" term loan was rumored to have traded in the low 90s after the company announced that it would receive $200 million of six-year notes from a group of funds managed by Goldman Sachs. The financing has been pegged to pay down bank debt, but is contingent upon the renegotiation of Broadwing's current credit agreement. Broadwing currently plans to amend various aspects of its existing credit facility, including pushing out its 2004 maturities. "The capital we received from Goldman is the first step in renegotiating the facility," said a company spokesman.
At the end of September, Broadwing had a $799 million revolving credit facility, $569 million in term loans held by banks and $492 million of institutional bank debt, according to the company's Nov. 14 quarterly report. Bank of America is the syndication agent on the credit and Citigroup is administration agent. Credit Suisse First Boston and Bank of New York are co-documentation agents.