| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers O > Headlines for Otelco Inc. > News item |
Otelco sets term loan add-on at $108.85 million to fund Country Road purchase
By Angela McDaniels
Tacoma, Wash., Oct. 20 - Otelco Inc. said it amended its senior credit facility, expanding it to $188.5 million in order to fund the acquisition of three Country Road Communications LLC subsidiaries.
The amendment will increase the term loan by $108.85 million to $173.5 million from $64.65 million, with funding conditioned on the closure of the Country Road acquisition. The facility will continue to include a $15 million revolving loan commitment.
On Aug. 7, an informed source told Prospect News that the company was looking for a $100 million-plus term loan add-on and that pricing on the add-on would be Libor plus 400 basis points. Pricing on the existing facility would increase to Libor plus 400 bps from Libor plus 200 bps, the source said.
GE Capital Markets, Inc. and CoBank, ACB were the lead arrangers, and General Electric Capital Corp. is the agent for the lenders, according to a company news release. CoBank, Raymond James Bank, CIBC Inc., Union Bank of California and Webster Bank were the other participating financial institutions.
The amended credit agreement will terminate on Dec. 31 if all of the conditions to funding have not been met.
"We have made significant progress in obtaining the necessary regulatory approvals in order to acquire the Country Road properties and expect to complete the transaction shortly, once all approvals are received," Mike Weaver, Otelco president and chief executive officer, said in the release.
Otelco is an Oneonta, Ala., provider of wireline telephone services in Alabama, Maine and Missouri.
Country Road is a provider of advanced telecommunications services based in Morristown, N.J. Otelco is acquiring its Pine Tree Holdings, Inc., Granby Holdings, Inc. and War Holdings, Inc. subsidiaries, which have operations in Maine, Massachusetts and West Virginia, respectively.
© 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.