CHARLOTTE, N.C., Feb. 11, 2013 /PRNewswire/ -- FairPoint Communications, Inc. (NasdaqCM: FRP) announced today that it priced $300 million aggregate principal amount of 8.75% senior secured notes due 2019 (the "Notes") in connection with its previously announced private offering exempt from the registration requirements of the Securities Act of 1933, as amended (the "Securities Act"). The closing of the private offering is expected to occur on February 14, 2013, subject to customary closing conditions.
FairPoint intends to use the net proceeds of the offering, together with financing under its proposed new credit agreement and cash on hand, to repay all amounts owed under its existing term loan. It is anticipated that the new credit agreement would include a $640 million term loan and a $75 million revolving credit facility. As of February 11, 2013, FairPoint had $947 million principal amount outstanding under its existing term loan, and no amounts outstanding under its existing revolving facility.
The Notes will not be registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. The Notes will be offered only in the United States to qualified institutional buyers pursuant to Rule 144A under the Securities Act and outside the United States in compliance with Regulation S under the Securities Act.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of Notes in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
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