CoreComm is attempting to expand its J.P. Morgan-led credit facility after deleveraging the balance sheet through an exchange of debt for common stock. An official with the company, who declined to be named, said CoreComm is currently in talks with J.P. Morgan to increase the $156.1 million facility, though he would not say by how much. The credit facility expansion is part of an ongoing process to recapitalize CoreComm. The official declined to comment on whether the facility will be used to pay down bonds or other debt securities.
The company, which provides voice and data services, has recapitalized debt by exchanging securities and $300 million in preferred stock. This has been exchanged for $5 million in cash and the issuance of 87% of the equity in the recapitalized company, said the official. Previously the significant debt and preferred stock was an impediment to the company, he added, declining to comment further. The loan, signed in April this year, is split into a $50 million revolver and a $106.1 million term loan. Pricing is LIBOR plus 41/ 4% and 41/ 2% for the respective tranches. There is no timeframe for completing the increase, the official said.