Windstream granted interim access to $400 million of DIP financing

By Caroline Salls

Pittsburgh, March 1 – Windstream Holdings, Inc. obtained court approval to access $400 million of a proposed $1 billion in debtor-in-possession financing from Citigroup Global Markets Inc. on an interim basis, according to an order filed Friday with the U.S. Bankruptcy Court for the Southern District of New York.

The final hearing is scheduled for April 16.

The company said this financing, combined with access to the cash generated by ongoing operations, will be available to meet Windstream’s operational needs and continue operating its business as usual.

The financing is composed of a $500 million revolving credit facility and a $500 million term loan facility. A total of $100 million of the revolver and $300 million of the term loan will be initially available to the company under the interim order.

The DIP facility will mature 24 months after the closing date.

The motion said the interest margin was included in a sealed fee letter.

Windstream is a Little Rock, Ark., telecommunications provider. The company filed bankruptcy on Feb. 25 under Chapter 11 case number 19-22312.

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