Consolidated Communications Holdings Inc. said Oct. 5 that it has concluded a refinancing of its secured term debt.
The debt refinancing provides the company with an extension of maturities and an increase to its revolving loan facility. Moreover, CFO Steve Childers said the refinancing will result in over $2 million per year in annual interest savings, providing the company with greater flexibility for future acquisitions.
Consolidated Communications issued incremental term loans of $900 million with a maturity of Oct. 5, 2023. The company will use the proceeds to pay off the outstanding principal amount of about $885 million, with a maturity of Dec. 23, 2020, and for fees and general corporate purposes. The new incremental term loan facility has an interest rate of LIBOR plus 3.00% with a 1.00% LIBOR floor.
The company also issued a $110 million revolving loan facility with a maturity of Oct. 5, 2021, replacing the previous $75 million facility that was scheduled to mature in December 2018.
Wells Fargo Securities LLC was the left lead arranger and book runner. Morgan Stanley Senior Funding Inc., Mizuho Bank LTD. and TD Securities (USA) LLC were joint lead arrangers and joint book runners.