US fibre-operator Earthlink is looking to secure US$450m of new debt to refinance existing commitments.
The ISP said it is planning a new secured credit facility consisting of a term loan of up to US$300m, and a revolving credit facility of up to…
US fibre-operator Earthlink is looking to secure US$450m of new debt to refinance existing commitments.
The ISP said it is planning a new secured credit facility consisting of a term loan of up to US$300m, and a revolving credit facility of up to US$150m.
The proceeds will be used to repay subsidiary Deltacom’s outstanding 10.5% senior secured notes due 2016, and to replace Earthlink’s existing US$150m revolver.
“Credit market conditions are currently favourable and replacing the Deltacom notes with the lower-cost new facility will reduce interest expense as well as simplify Earthlink’s capital structure,” said Rolla Huff, Earthlink’s chairman and CEO.
Earthlink expects borrowings under the new facility to be secured by all of the company’s existing and future subsidiaries and collateralised by a lien on all of the company’s and the guarantors’ assets.
It is yet to disclose any further details.
Atlanta, Georgia-based Earthlink operates an extensive fibre network and four secure data centres, offering broadband and VoIP alongside other internet services.
