Firm positioned for development with totally funded fiber enlargement plans, concentrating on 1.6 million fiber upgrades over the following 5 years.
MATTOON, Sick.–Consolidated Communications has secured and closed on an incremental $150 million time period loan that’s fungible with the corporate’s present First Lien Time period loan B with maturities due October 2027.
The phrases of the incremental time period loan facility are considerably like these regarding the Firm’s present time period loan facility, besides with respect to subject price. The loans beneath the incremental time period loan facility bear curiosity at a price of equal to LIBOR plus of 4.75 p.c each year with a 1.zero p.c LIBOR flooring.
“We’re more than happy to have secured the extra financing on engaging phrases and recognize the assist of key lenders that positioned the proceeds,” mentioned Steve Childers, CFO of Consolidated Communications. “We’re working from a place of economic power, with elevated liquidity and a completely funded development plan to speed up our fiber builds.”
JPMorgan Chase Bank, N.A., Morgan Stanley Senior Funding, Inc., Wells Fargo Securities, LLC, Goldman Sachs Bank, USA, Deutsche Bank Securities Inc., TD Securities (USA) LLC and Mizuho Bank, Ltd. served as lead arrangers and e-book runners for the financing.
This newest funding comes after the telco accomplished a refinancing and recapitalization of its steadiness sheet with the Searchlight funding and reported diminished leverage of three.5x and a $250 million untapped revolver with roughly $100 million in cash on the finish of the third quarter.
The telco goes to leverage a mixture of its personal investments and that of the FCC’s Rural Digital Alternatives Fund (RDOF) Public sale to speed up its fiber builds and allow gigabit-capable companies to a further 300,000 houses and small companies in 2021. This plan is coupled with Consolidated’s current announcement and strategic partnership with Searchlight Capital Companions will future proof its community and improve a complete of 1.6 million further passings to fiber-gigabit companies over a five-year interval.
