Prison-Phone Company ViaPath Wraps Up $1.38 Billion Debt Sale After New FCC Rules
- Refinancing addresses company’s 2025 and 2026 obligations
- Transaction had been on pause following FCC rule proposal
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ViaPath Technologies has completed a $1.38 billion refinancing transaction after temporarily pausing the process following new regulations from the Federal Communications Commission that curtail how much the prison-communications provider can charge for calls.
The five-year, first-lien leveraged loan, led by Texas Capital Bank, comes with a margin of 7.5 percentage points over the Secured Overnight Financing Rate, according to people with knowledge of the matter who asked not to be identified because the information is private. That is the same margin discussed with lenders before the FCC proposed rule changes in late June to cap rates on phone and video calls.