Hickory Tech enters $22 million term loan for IdeaOne acquisition

By Jennifer Chiou

New York, March 2 - Hickory Tech Corp. entered into a $22 million incremental term loan agreement on Thursday to finance the acquisition of IdeaOne Telecom, according to an 8-K filing with the Securities and Exchange Commission

Lenders include CoBank ACB, Sun Trust Bank, NA, Associated Bank, NA and four Farm Credit System Institutions.

Borrowings under the new credit agreement will bear interest at Libor plus a spread determined according to the company's leverage ratio. Currently the margin is 350 basis points.

There is no Libor floor.

Beginning on June 30 and on the last day of each subsequent quarter, the company is required to make quarterly amortization payments of $55,000, the filing stated.

Based in Mankato, Minn., Hickory Tech is a communications company.

© 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.