JPMorgan and a syndicate of lenders have committed to provide up to $600 million in incremental term loans under Windstream Holdings’ existing senior secured credit facilities.

The incremental loans are expected to be issued at a price of 99% of the principal amount of the loan. Interest will accrue at either LIBOR+4% per annum or, at the option of Windstream Services, at a base rate plus a margin of 3% per annum. LIBOR will be subject to a 0.75% floor.

The loans will be subject to quarterly amortization of approximately 0.25% of the initial principal amount, with the remaining balance payable on March 29, 2021. The loans will be repayable at any time, subject to soft call protection for the first six months following incurrence.

Of the total $600 million, $150 million is expected to be funded in early December and the proceeds are expected to be used to pay down amounts outstanding under the revolving line of credit under Windstream Services’ existing senior secured credit facilities and to pay fees and expenses related to the proposed merger with Earthlink.

The remaining $450 million is expected to close concurrently with the closing of the merger, and the proceeds are expected to repurchase or discharge Earthlink’s existing third-party debt and to pay related fees and expenses.

If the merger has not closed by March 15, 2017, the remaining $450 million will be funded on March 15, 2017 and placed into escrow pending the closing of the merger. The $450 million of loans will be subject to a ticking fee beginning on or about December 21, 2016 and ending on the funding date for the $450 million portion of the loans.

The closings, with respect to each of the $150 million portion and the $450 million portion, are subject to customary closing conditions. The closing of the $450 million portion is also subject to the closing of the merger agreement.