FairPoint Communications has completed the refinancing of its senior secured credit facility.
The proceeds of the new issues, together with cash on hand, were used to repay US$947m outstanding under the former term loan.
The local exchange carrier…
FairPoint Communications has completed the refinancing of its senior secured credit facility.
The proceeds of the new issues, together with cash on hand, were used to repay US$947m outstanding under the former term loan.
The local exchange carrier issued US$300m of 8.75% senior secured notes due 2019 and entered into a new senior secured credit facility. The new facility includes a US$640m term loan maturing in 2019 and a US$75m revolving credit facility maturing in 2018.
Morgan Stanley acted as administrative agent for the refi.
“We are pleased to complete this refinancing,” said Ajay Sabherwal, CFO at the North-Carolina based telco. “We have extended our debt maturity by more than three years, while lowering our total debt service and improving covenant flexibility.
“This added flexibility will allow us to more effectively execute on our revenue transformation and human resource strategies.”
Fairpoint offers broadband, local and long-distance phone, television and other high-capacity data services to customers across 17 US states.
