Jan. 28 (Bloomberg) -- Hubbard Radio LLC, an operator of TV and radio stations, set the rate it will pay on a $358 million term loan B, according to a person with knowledge of the transaction.
The company is seeking to lower the rate it pays on its existing term loan and increase the facility by $140 million to $358 million with the additional proceeds being used refinance Hubbard Radio’s second-lien term loan due in 2018, said the person, who asked not to be identified because the information it private.
The loan, maturing in April 2017, will pay interest at 3.5 percentage points to 3.75 percentage points more than the London interbank offered rate and will be sold at par, according to the person. Libor, a rate banks say they can borrow in dollars from each other, will have a 1.25 percent floor.
Lenders are being offered six months of soft-call protection of 101 cents, said the person, meaning the company would have to pay 1 cent more than face value to refinance the debt during the first six months.
Morgan Stanley is arranging the transaction with consents and commitments due Feb. 5, according to the person.
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