US fibre-operator Earthlink has scrapped plans for a US$450m refi citing market conditions.
In February Earthlink laid out plans for a new term loan of up to US$300m and a revolver of up to US$150m.
At the time CEO Rolla Huff said the ISP was…
US fibre-operator Earthlink has scrapped plans for a US$450m refi citing market conditions.
In February Earthlink laid out plans for a new term loan of up to US$300m and a revolver of up to US$150m.
At the time CEO Rolla Huff said the ISP was looking to refinance because credit markets were favourable. The purpose of the refi was to reduce interest expense as well as simplify Earthlink’s capital structure. The proceeds would have been used to repay subsidiary Deltacom’s outstanding 10.5% senior secured notes due 2016, and to replace Earthlink’s existing US$150m revolver.
In a statement, Huff said: “Current market conditions are not providing us the opportunity to refinance the ITC DeltaCom senior secured notes due 2016 in the economically attractive way that had been anticipated.
“While we will look for the opportunity to refinance this debt at another time, we continue to have the financial platform to support our business strategy and capitalise on the opportunities ahead.”
Atlanta, Georgia-based Earthlink operates an extensive fibre network and four secure data centres, offering broadband and VoIP alongside other internet services.