Morgan Stanley Agents FairPoint Communications Refi
FairPoint Communications announced it completed the refinancing of its senior secured credit facility. Morgan Stanley Senior Funding served as administrative agent.
“We are pleased to complete this refinancing,” said Ajay Sabherwal, CFO of FairPoint. “We have extended our debt maturity by more than three years, while lowering our total debt service and improving covenant flexibility. This added flexibility will allow us to more effectively execute on our revenue transformation and human resource strategies.”
In connection with the refinancing, FairPoint issued $300 million aggregate principal amount of 8.75% senior secured notes due 2019 and entered into a new senior secured credit facility. The new facility includes a $640 million term loan maturing in 2019 and a $75 million revolving credit facility maturing in 2018.
The proceeds of the refinancing, together with cash on hand, were used to repay the $947 million outstanding under the former term loan, plus accrued interest and to pay associated fees and expenses.
FairPoint Communications is a communications provider of broadband Internet access and local and long-distance phone, television and other high-capacity data services.