US fibre operator Lumos Networks has finalised a US$425m debt refinancing comprising a revolver and two term loans.
The company priced a US$100m senior secured five-year term loan at Libor plus 3.00%. A US$275m senior secured six-year term loan priced…
US fibre operator Lumos Networks has finalised a US$425m debt refinancing comprising a revolver and two term loans.
The company priced a US$100m senior secured five-year term loan at Libor plus 3.00%. A US$275m senior secured six-year term loan priced at Libor plus 3.25%, and the US$50m senior secured five-year revolver priced at Libor plus 3.00%.
The term loans replace existing credit facilities amounting to US$370m.
The company said it expects its weighted, blended interest rate to decrease from 3.8% to approximately 3.5%.
Lead arranger and bookrunner on the transaction was CoBank, Fifth Third Bank was Syndication Agent and Royal Bank of Canada and Union Bank were documentation agents.
Tim Biltz, CEO of Lumos Networks, commented that the new credit facility would significantly enhance the operator’s financial flexibility. “We were able to lower our current blended interest rate and bring more than $50 million in cash onto our balance sheet. Additionally, we were able to increase our leverage ratio and extend our principal debt repayments,” he said.
NASDAQ-listed Lumos Networks operates a 5,800 miles fibre network in Virginia, West Virginia, and portions of Pennsylvania, Maryland, Ohio and Kentucky and provides data, broadband, voice and IP services. The company reported a 2012 turnover of US$206.9m and has a market cap of US$295.9m.