Paetec gets OK to skip change-of-control offers for three note series

By Angela McDaniels

Tacoma, Wash., Aug. 17 - Paetec Holding Corp. received the consents needed to amend its 9½% senior notes due 2015, 8 7/8% senior secured notes due 2017 and 9 7/8% senior notes due 2018, according to a company news release.

A consent solicitation for the notes expired at 5 p.m. ET on Aug. 16. The company received consents from the holders of a majority in principal amount of each series of notes, excluding notes owned by any affiliate of the company.

The amendment removes the company's obligation to hold change-of-control offers for the notes following its proposed acquisition by Windstream Corp.

It also clarifies the company's obligations under the reporting covenant in each note indenture. Going forward, only Windstream financials will be furnished, given Windstream's guarantee of Paetec's bonds.

The company has executed a supplemental indenture effecting the proposed amendment.

The consent fee is $750,000 for the 9½% notes, $1,625,000 for the 8 7/8% notes and $1,125,000 for the 9 7/8% notes. The fee will be paid pro rata to noteholders of record as of 5 p .m. ET on Aug. 2 who delivered consents prior to the deadline.

J.P. Morgan Securities LLC was the solicitation agent, and i-Deal LLC was the information agent.

Paetec is a competitive local exchange carrier and provides telecommunications services primarily to business customers. It is based in Fairport, N.Y.

Windstream, based in Little Rock, Ark., is a communications and technology solutions provider.

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