(Bloomberg) -- Telecommunications provider Windstream Holdings, Inc. has launched a $1.3 billion debt package to refinance existing loans.
The deal includes a $500 million seven-year term loan and $800 million of senior secured first-lien notes, according to people familiar with the matter who aren’t authorized to speak publicly and asked not to be identified. JPMorgan Chase & Co. is leading the transactions.
A lender call for the loan is scheduled for Monday at 10 a.m. New York time while the investor call for the bonds is 11:30 a.m. New York time. Any additional proceeds after repaying debt would be used for general corporate purposes, which could include investments in the firm’s network.
The loan is being discussed at 5.5 percentage points over the Secured Overnight Financing Rate and a discounted price of 99 cents on the dollar, the people said. The bonds are being marketed with a yield in the low-9% range, they added.
JPMorgan declined to comment. A representative for Windstream didn’t immediately respond to requests for comment.
Lower-rated companies are rushing to the debt markets ahead of the US elections in November. The Federal Reserve lowered its benchmark interest rate by a half percentage point last week, setting off a rally in the junk-bond asset class as investors rush to lock in high yields.
In May, Uniti Group Inc. announced that it had entered into a definitive agreement to merge with Windstream. The merger is expected to close in the second half of 2025 and will combine Uniti’s fiber network with Windstream’s fiber-to-the-home business, according to a press release.
The debt deals are expected to wrap up on Sept. 26, the people said.
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