Bragg Communications Seeks Lower Rate on $300 Million Term LoanMichael Amato
Bragg Communications Inc., a provider of television and telephone services, plans to lower the rate it will pay on a $300 million term loan, according to a person with knowledge of the transaction.
The interest rate on the debt will be reduced to 2.75 percentage points more than the London interbank offered rate and the loan will be sold at par, said the person, who asked not to be identified because the information is private. Libor, a rate banks say they can borrow in dollars from each other, will have a 75 basis-point floor. A basis point is 0.01 percentage point.
Lenders are being offered six months of soft-call protection of 101 cents, meaning the company would have to pay 1 cent more than face value to refinance the debt during the first six months.
The transaction will close after the 101 soft-call protection on the existing loan expires on March 1, according to the person.
TD Securities Inc., the investment-banking arm of Toronto Dominion Bank, is arranging the financing.
The company’s existing term loan pays 3 percentage points more than Libor with a 1 percent floor and was sold to investors at 99.25 cents on the dollar, according to data compiled by Bloomberg.
Jill Laing, a spokeswoman for Bragg Communications, didn’t immediately respond to an e-mail seeking comment.