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Consolidated Communications completes upsized $1.01 billion refinancing
By Wendy Van Sickle
Columbus, Ohio, Oct. 5 – Consolidated Communications Inc. closed its $900 million seven-year term loan B and its $110 million five-year revolver, upsized from an originally planned $100 million, according to a Wednesday press release.
Pricing on the B loan remained at Libor plus 300 basis points with a 1% Libor floor.
The term loan B has 101 soft call protection for six months. The debt will be amortized at 1% per year, the same as under the company’s previous term loan, which was scheduled to mature on Dec. 23, 2020.
Proceeds of the new term loan will be used to pay off the $885 million outstanding principal under the existing term loan and for fees and general corporate purposes.
The terms, conditions and covenants of the new incremental term loan facility are consistent with those of the previous facility, except for the secured leverage incurrence test, which was increased to 3 times from 2.75 times.
The $110 million revolver replaces a $75 million facility that was scheduled to mature in December 2018.
Revolver borrowings bear interest at Libor plus 250 bps to 325 bps, depending on leverage ratio, the same as under the previous revolver.
Wells Fargo Securities, LLC was the left lead arranger and bookrunner. Morgan Stanley Senior Funding, Inc., Mizuho Bank Ltd. and TD Securities (USA) LLC were joint lead arrangers and joint bookrunners.
Steve Childers, Consolidated Communications chief financial officer, said in that release that the refinancing will save the company more than $2 million per year in interest costs and provide more flexibility for future acquisitions.
Consolidated Communications is a Mattoon, Ill.-based communications provider.
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