NTFC Capital, a subsidiary of General Electric Capital Corp., is expecting commitments from Nortel Networks Corporation and Marconi on its $150 million refinance credit for Texas-based broadband company, Grande Communications, according to market sources. NTFC is lead arranger and administration agent and GECC is acting as book-runner on the deal, which was launched two weeks ago. The primary sponsor for the deal is venture capital firm J.H. Whitney & Co.
"It is a tough market for telecommunications companies, but Grande has a whole cable overbuild strategy that differentiates it from other CLECs" said a banker, speculating on Nortel and Marconi's interest in the credit. But the market may still be unkind as commitments seem to be coming in slowly on the two week old deal with pro rata pricing and maturities typical to institutional pieces. The loan comprises an eight-year, $25 million revolver and an eight-year, $125 million term loan "A." Pricing is LIBOR plus 41/2 % for the revolver and LIBOR plus 5% for the "A" term. Covenants are still being determined.