US fibre-operator Earthlink has priced a US$300m high-yield offering at par.
The 7.375% senior notes mature in 2020 and will be used to pay off debt.
Proceeds, and cash on hand, will be used to redeem subsidiary Deltacom’s 10.5% senior secured notes…
US fibre-operator Earthlink has priced a US$300m high-yield offering at par.
The 7.375% senior notes mature in 2020 and will be used to pay off debt.
Proceeds, and cash on hand, will be used to redeem subsidiary Deltacom’s 10.5% senior secured notes which are due in 2016.
Earthlink previously tried and failed to buy back the bonds with a new US$300m term loan. That plan was discarded in early March with the telco citing unattractive capital market conditions.
The transaction is expected to close on 29 May. In an SEC filing the company also said it had received commitment letters from banks for an amended and restated four-year credit facility for up to US$135m, to replace its current facility.
Earthlink is based in Atlanta, Georgia and operates an extensive fibre network and four secure data centres. It offers broadband and VoIP alongside other internet services.
