Lumos Networks gets agreement for $370 million credit facility

By Sara Rosenberg

New York, Sept. 8 - Lumos Networks Operating Co. (Ntelos Wireline One Inc.) has arranged a new $370 million senior secured credit facility that will fund upon completion of its separation from Ntelos Holdings Corp., according to a news release.

CoBank and SunTrust Robinson Humphrey Inc. are the joint lead arrangers and bookrunners on the deal, with CoBank the administrative agent.

The facility consists of a $60 million five-year revolver, of which $30 million will be drawn at close, a $110 million five-year term loan A and a $200 million six-year term loan B.

Pricing on the revolver and term loan A is Libor plus 325 basis points, and the term loan B is priced at Libor plus 350 bps.

Proceeds will be used to fund a working capital cash reserve and to pay about $315 million to Ntelos.

Ntelos will then use the funds to pay off intercompany debt and to make a $283 million mandatory repayment on its credit facility.

Lumos is a wireline communications company. Ntelos is a Waynesboro, Va.-based communications provider.

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