Shenandoah Telecommunications gets $228 million credit facility

By Sara Rosenberg

New York, Aug. 3 - Shenandoah Telecommunications Co. closed on a new $228 million credit facility, according to an 8-K filed with the Securities and Exchange Commission on Tuesday.

CoBank, BB&T and Wells Fargo acted as the co-lead arrangers on the deal that was completed on July 30, with CoBank the bookrunner and administrative agent.

The facility consists of a $30 million revolver, an $8 million fixed term loan and a $190 million term loan A.

The fixed term loan is required to be repaid in monthly installments of about $200,000, plus interest at 7.37%, from August 2010 through August 2013.

Amortization on the term loan A is $2.4 million beginning on Dec. 31, 2010 through Sept. 30, 2011, increasing to $4.7 million quarterly thereafter through Sept. 30, 2015, with the remaining expected balance of $104 million due Dec. 31, 2015.

Pricing on the revolver and the term loan A is Libor plus 350 bps. The spread can vary from Libor plus 300 bps to 350 bps based on leverage.

The commitment fee on the revolver can range from 37.5 bps to 50 bps, also based on leverage.

The revolver can be upsized by $20 million once certain conditions have been met.

There is an accordion feature for $100 million of incremental term loans.

Financial covenants include, among other things, a total leverage ratio of less than or equal to 3.00 to 1.00 from the closing date through March 31, 2011, then 2.50 to 1.00 through Dec. 31, 2012, and 2.00 to 1.00 thereafter, and a minimum fixed-charge coverage ratio of greater than 0.80 to 1.00 from the closing date through Dec. 31, 2012, then 0.90 to 1.00 through Dec. 31, 2013 and 1.00 to 1.00 thereafter.

Proceeds were used to fund the $148 million acquisition of the cable operations of Helicon Cable Holdings LLC and to refinance existing debt and will be available to fund planned capital expenditures to upgrade the acquired cable networks and other corporate needs.

Shenandoah Telecommunications is an Edinburg, Va.-based provider of regulated and unregulated telecommunications services.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.