Conterra sets price talk on $55M add-on term loan

TD Securities has set price talk on a $55 million incremental term loan B for Conterra Ultra Broadband LLC at Sofr+CSA+475, with a 1% Libor floor and offer price of 99.25, sources said, noting that commitments are due Feb. 1. Proceeds from the add-on are earmarked to repay revolver borrowings, add cash to the balance sheet, fund growth and pay related fees and expenses.

The credit spread adjustments are 10 basis points for the one-month rate, 15 bps for the three-month rate and 25 bps for the six-month rate. Pricing on the existing loan, at L+475, with a 1% floor, is also being shifted to be benchmarked to the secured overnight financing rate. The loan includes a 101 soft call premium through June 2022.

In 2019, Conterra obtained a $250 million, seven-year covenant-lite first-lien term loan and a $65 million, eight-year covenant-lite term loan to refinance existing pro rata debt.

Conterra, backed by APG Asset Management and Fiera Infrastructure following their June 2021 purchase of Court Square Capital Partners' remaining equity stake, is an independent bandwidth infrastructure provider.