Windstream eyes amending loan to allow second-priority debt

By Wendy Van Sickle

Columbus, Ohio, May 30 – Windstream Holdings, Inc. said that it is seeking to amend its senior secured credit facility to permit the issuance or incurrence of second-priority lien secured debt, according to a press release.

The amendment would also allow the company to use proceeds of such an issuance to repay certain outstanding debt; permit the execution of a junior lien intercreditor agreement; and limit the ability of Windstream to declare and pay dividends in some respects.

Windstream also said its Windstream Services, LLC and Windstream Finance Corp. subsidiaries are soliciting consents to amend the indenture governing its $600 million of 8 5/8% senior first-lien notes due 2025 to allow the issuers and guarantors to issue or incur debt on a junior-lien basis and to authorize the collateral agent to enter into a junior-lien intercreditor agreement upon the issuance or incurrence of junior-lien secured debt.

The credit agreement amendment and consent solicitation are not conditioned on each other.

Windstream is a Little Rock, Ark.-based networking and telecommunications company.

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