Shenandoah plans $960 million credit facility with Ntelos purchase

By Sara Rosenberg

New York, Aug. 10 – Shenandoah Telecommunications Co. has received a commitment for a $960 million credit facility to fund its acquisition of Ntelos Holdings Corp. and a network upgrade and to refinance existing debt, according to a news release.

CoBank, Royal Bank of Canada and Fifth Third Bank are the leads on the debt.

The facility consists of a $75 million revolver and $885 million in term loans, including a $75 million delayed-draw tranche.

Under the agreement, Ntelos is being bought for $9.25 per share in cash for a total equity value of about $208 million.

Closing is expected by early 2016, subject to customary conditions, including approval by Ntelos’ shareholders and regulatory approval by the Federal Communications Commission and certain state regulators.

Shenandoah Telecommunications is an Edinburg, Va.-based holding company that provides a broad range of telecommunications services through its operating subsidiaries. Ntelos is a Waynesboro, Va.-based provider of wireless and wireline communications services.

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