US ISP Windstream is planning to offer in a private placement US$500m of senior notes that bear a fixed interest rate and mature in 2022.
In a statement, Windstream said that it expected to use the net proceeds of the offering to redeem US$201.5m of its…
US ISP Windstream is planning to offer in a private placement US$500m of senior notes that bear a fixed interest rate and mature in 2022.
In a statement, Windstream said that it expected to use the net proceeds of the offering to redeem US$201.5m of its outstanding 8.625% senior notes that are due in 2016. The remaining proceeds will go towards repaying amounts that Windstream has borrowed from its revolving credit facility.
In August, Windstream announced an agreement to acquire business-focussed telco PAETEC. As part of the deal, Windstream said it would assume or refinance PAETEC’s net debt of US$1.4bn at the time of closing.
The deal is still pending state and federal regulatory approvals, but Windstream expects it to be completed by the end of 2011.
Windstream said that it intends to use borrowings from its revolving credit facility to repurchase US$300m of PAETEC’s outstanding 9.5% senior due in 2015.
It expects the offering to be completed before the end of November, subject to market and other conditions.
Windstream has not disclosed which banks are arranging the offering.
