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EarthLink And ITC^DeltaCom Announce Results At Initial Settlement Date Of Tender Offer And Consent Solicitation For ITC^DeltaCom's 10.5% Senior Secured Notes Due 2016 And The Redemption Of The Remaining ITC^DeltaCom Notes
May 29, 2013 /PRNewswire/ -- EarthLink, Inc. (NASDAQ: ELNK) ("EarthLink") today announced that, as of
5:00 p.m. New York Time, on
May 28, 2013 (the "Consent Expiration"),
$129,672,000 aggregate principal amount of the 10.5% Senior Secured Notes due 2016 (CUSIP No. 45031TAR5) (the "ITC^DeltaCom Notes") of ITC^DeltaCom, Inc., EarthLink's wholly-owned subsidiary ("ITC^DeltaCom"), have been validly tendered, not validly withdrawn, and accepted for purchase by ITC^DeltaCom in connection with ITC^DeltaCom's previously announced cash tender offer for any and all of the ITC^DeltaCom Notes.
Holders who validly tendered their ITC^DeltaCom Notes at or prior to the Consent Expiration, and did not validly withdraw their Notes at or prior to the Consent Expiration will receive
$1,058.75, plus accrued and unpaid interest, payable in cash, for each
$1,000 principal amount of ITC^DeltaCom Notes, which includes a consent payment of
$1,000 principal amount of ITC^DeltaCom Notes. In accepting for purchase all of the ITC^DeltaCom Notes validly tendered and not validly withdrawn prior to the Consent Expiration, ITC^DeltaCom has waived the Supplemental Indenture Condition (as defined and described in the Offer to Purchase).
The tender offer is scheduled to expire at
New York City time, on
June 11, 2013, unless extended or earlier terminated (the "Expiration Time"). Holders who validly tender after the Consent Expiration and prior to the Expiration Time will receive
$1,028.75, plus accrued and unpaid interest, payable in cash, for each
$1,000 principal amount of ITC^DeltaCom Notes.
The complete terms and conditions of the tender offer are set forth in an Offer to Purchase and Solicitation of Consents (the "Offer to Purchase") and related Consent and Letter of Transmittal ("Letter of Transmittal") that have been sent to holders of the ITC^DeltaCom Notes. Copies of the Offer to Purchase and Letter of Transmittal may be obtained from the Tender and Information Agent for the tender offer,
D.F. King & Co., Inc., at (800) 967-7921 (toll-free).
Credit Suisse Securities (
USA) LLC is the Dealer Manager for the tender offer. Questions regarding the tender offer may be directed to Credit Suisse Securities (
USA) LLC at (800) 820-1653 (toll-free) and (212) 538-0083 (collect).
The Company further announced today that it has caused ITC^DeltaCom to deliver a notice of redemption of any and all ITC^DeltaCom Notes not tendered and accepted for purchase pursuant to the tender offer. The redemption would occur on
June 28, 2013 and Holders of the ITC^DeltaCom Notes to be redeemed will receive a redemption price equal to 105.250% of the principal amount of such ITC^DeltaCom Notes, plus accrued and unpaid interest to the redemption date.
Following the delivery of the notice of redemption, ITC^DeltaCom also discharged its remaining obligations under the indenture governing the ITC^DeltaCom Notes by depositing in trust with the trustee sufficient funds to satisfy the payment of the redemption price pursuant to the terms of an irrevocable trust agreement.