Otelco $135 million credit facility expected as May business

By Sara Rosenberg

New York, April 18 - Otelco Inc. is anticipated to hold a bank meeting sometime in May to launch its proposed $135 million senior secured credit facility, according to a market source.

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

Proceeds will be used to help fund the $37.8 million cash acquisition of Mid-Maine Communications Inc. and to refinance the company's smaller existing senior secured credit facility at a lower rate.

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 services.

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.

© 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.