A Wireless is the latest leveraged loan issuer to raise debt backing a dividend for its private equity sponsor.
UBS will hold a lender call at 3 p.m. EDT on Wednesday to launch a $50 million incremental B term loan for A Wireless, according to sources.
The company was last in the loan market in April with a $575 million, six-year TLB that backed a dividend recapitalization. Pricing came at L+600 with a 1% LIBOR floor, and the loan is governed by a total leverage covenant. Amortization is set at 2.5% for the first three years and 5% thereafter.
Existing facility ratings are B/Ba3, with a 3 recovery rating from S&P Global Ratings. Corporate ratings are B/B1, with stable and positive outlooks. The borrower is LSF9 Atlantis Holdings LLC.
Dividend deals have returned to the U.S. leveraged loan market of late, as borrowers take advantage of renewed supply-shortage of paper in which to invest. There were nearly $3 billion in loans backing dividends in July – up from $2 billion in June. And already in August, typically a sleepy month for the U.S. credit markets, there is some $1.4 billion in dividend deals, according to LCD.
Greenville, N.C.–based A Wireless operates as a retailer of Verizon Wireless products and services. Lone Star is the sponsor. — Jon Hemingway
You can read more about how dividend loans work in LCD’s online Loan Market Primer.
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