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Feb. 14, 2013 /PRNewswire/ -- FairPoint Communications, Inc. (NasdaqCM: FRP) ("FairPoint") announced today that it has successfully completed the refinancing of its senior secured credit facility.
"We are pleased to complete this refinancing," said
Ajay Sabherwal, Chief Financial Officer of FairPoint. "We have extended our debt maturity by more than three years, while lowering our total debt service and improving covenant flexibility. This added flexibility will allow us to more effectively execute on our revenue transformation and human resource strategies."
In connection with the refinancing, FairPoint issued
$300 million aggregate principal amount of 8.75% senior secured notes due 2019 (the "Notes") and entered into a new senior secured credit facility. The new senior secured credit facility includes a
$640 million term loan maturing in 2019 and a
$75 million revolving credit facility maturing in 2018. The proceeds of the refinancing, together with cash on hand, were used to repay the
$947 million outstanding under the former term loan, plus accrued interest thereon as of the closing date, and to pay associated fees and expenses.
The Notes were sold in
the United States to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"), and outside
the United States pursuant to Regulation S under the Securities Act. The Notes have not been 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 the registration requirements of the Securities Act and applicable state securities laws.
This press release is for informational purposes only and does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of Notes or other securities 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.