Alaska Communications plans new debt for purchase by ATN and Freedom

By Sara Rosenberg

New York, Jan. 4 – Alaska Communications Systems Group Inc. has received a commitment for new debt financing to help fund its acquisition by a newly formed entity owned by ATN International Inc. and Freedom 3 Capital LLC, according to an 8-K filed with the Securities and Exchange Commission on Monday.

Fifth Third Bank provided the debt commitment.

Other funds for the transaction will come from equity.

Under the agreement, Alaska Communications is being bought for $3.40 per share in cash. The transaction is valued at about $332 million, including net debt.

Closing is expected in the second half of 2021, subject to approval of Alaska Communications’ stockholders, regulatory approvals and other customary conditions.

Alaska Communications’ prior agreement to be acquired by Macquarie Capital and GCM Grosvenor for $3.26 per share in cash has been terminated.

The acquisition by Macquarie Capital and GCM Grosvenor was expected to be funded in part with $230 million of senior secured credit facilities, split between a $20 million revolver and a $210 million initial term loan.

ING Bank, Societe Generale, Sumitomo Mitsui Banking Corp. and MUFG were going to be the joint lead arrangers and bookrunners on the financing for the Macquarie Capital and GCM Grosvenor transaction.

Alaska Communications is an Anchorage-based provider of advanced broadband and managed IT services for businesses and consumers in Alaska.

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