Verizon Wireless secures $7.55 bln bridge loan for Alltel Purchase
Morgan Stanley has provided a $7.55 billion 364-day bridge loan to back Verizon Wireless' acquisition of Alltel Corp for $28.1 billion, including $22.2 billion in debt, according to Reuters Loan Pricing Corp. The 364-day loan matures June 4, 2009, and includes a $4.8 billion drawn portion and a $2.75 billion delayed-draw portion that will be available in three drawings, according to a Securities and Exchange Commission filing.
The borrower has already drawn $4.79 billion of the loan to finance the purchase of Alltel's unsecured bridge loans that were incurred when the company underwent its leveraged buyout last year.
Initial pricing on the loan is 75 basis points over the London interbank offered rate, with an 8 basis-point commitment fee on the undrawn portion.
Pricing will eventually flip to a grid that will be tied to the borrower's long-term ratings from Standard & Poor's.
Source: Reuters
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