Otelco to get $135 million credit facility with Mid-Maine buy

By Sara Rosenberg

New York, April 10 - Otelco Inc. plans to obtain a new $135 million senior secured credit facility as part of its acquisition of Mid-Maine Communications Inc., according to a company news release.

General Electric Capital Corp. is the lead arranger on the deal.

In addition to funding the about $37.8 million cash acquisition of Mid-Maine, proceeds from the new credit facility will be used to refinance the company's smaller existing senior secured credit facility at a lower rate, the release said.

For the year ended Dec. 31, Mid-Maine generated $22.1 million in total revenue. This acquisition will increase Otelco's total access lines to over 51,000 from 32,500.

Closing of the purchase is subject to customary conditions, including approval by Mid-Maine stockholders, financing and approval by the Maine Public Utilities Commission.

Otelco is an Oneonta, Ala., wireline telephone services provider in rural communities in Alabama and Missouri. Mid-Maine is a Bangor, Maine, provider of telecommunications products.

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