Daily News: October 7, 2016

Wells, Others Upsize Consolidated Communications Revolver to $110MM


Consolidated Communications refinanced its secured term debt, resulting in an increase to its revolving loan facility from $75 million to $110 million and a new maturity date of October 5, 2021.

Wells Fargo Securities acted as left lead arranger and bookrunner. Morgan Stanley Senior Funding, Mizuho and TD Securities acted as joint lead arrangers and bookrunners.

Consolidated Communications issued incremental term loans in the aggregate amount of $900 million with a maturity of October 5, 2023. Proceeds will be used to pay off the outstanding principal amount of approximately $885 million, which was scheduled to mature on December 23, 2020, and for fees and general corporate purposes. The new term Loan facility has an interest rate of LIBOR+3% with a 1% LIBOR floor. The debt will be amortized at the same 1% rate per year.

“The existing bank market environment is attractive and we viewed this as an opportunity to achieve interest savings, extend maturities and enhance liquidity,” said Steve Childers, Consolidated Communications CFO. “The successful refinancing will provide more than $2 million per year in annual interest savings and provides us with more flexibility for future acquisitions.”

Consolidated Communications Holdings is a broadband and business communications provider throughout its 11-state service area.