Consolidated Communications plans $810 million credit facility with North Pittsburgh purchase

By Sara Rosenberg

New York, July 2 - Consolidated Communications Holdings, Inc. is planning on getting a new $810 million credit facility to help fund its acquisition of North Pittsburgh Systems, Inc., according to a company presentation on Monday.

Wachovia is the lead bank on the deal.

The facility consists of a $760 million term loan and a $50 million revolver.

Pro forma leverage will be 4.4 times net debt to LTM adjusted EBITDA, the company said.

Under the agreement, Consolidated Communications will acquire North Pittsburgh for $375.1 million.

North Pittsburgh's shareholders will receive $25.00 per share in cash and stock. The shareholders may elect to exchange each share for either $25.00 in cash or 1.1061947 shares of Consolidated common stock, subject to proration so that 80% of the North Pittsburgh shares will be exchanged for cash and 20% for stock.

The acquisition is expected to close either in the fourth quarter of 2007 or first quarter of 2008, subject to certain customary conditions, including approvals from federal and state regulators and North Pittsburgh's shareholders. It is not subject to financing.

Consolidated Communications is a Mattoon, Ill.-based rural local exchange company. North Pittsburgh is a Gibsonia, Pa., provider of telecommunication services.

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