Consolidated Communications Secures $150M in New Financing

Company positioned for growth with fully funded fiber expansion plans, targeting 1.6 million fiber upgrades over the next five years.

  • Consolidated Communications


MATTOON, Ill.--Consolidated Communications has secured and closed on an incremental $150 million term loan that is fungible with the company’s existing First Lien Term Loan B with maturities due October 2027.

The terms of the incremental term loan facility are substantially like those relating to the Company's existing term loan facility, except with respect to issue price. The loans under the incremental term loan facility bear interest at a rate of equal to LIBOR plus of 4.75 percent per annum with a 1.0 percent LIBOR floor.

"We’re very pleased to have secured the additional financing on attractive terms and appreciate the support of key lenders that placed the proceeds," said Steve Childers, CFO of Consolidated Communications. "We are operating from a position of financial strength, with increased liquidity and a fully funded growth plan to accelerate 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 book runners for the financing.

This latest funding comes after the telco completed a refinancing and recapitalization of its balance sheet with the Searchlight investment and reported reduced leverage of 3.5x and a $250 million untapped revolver with approximately $100 million in cash at the end of the third quarter.

The telco is going to leverage a mix of its own investments and that of the FCC’s Rural Digital Opportunities Fund (RDOF) Auction to accelerate its fiber builds and enable gigabit-capable services to an additional 300,000 homes and small businesses in 2021. This plan is coupled with Consolidated’s recent announcement and strategic partnership with Searchlight Capital Partners will future proof its network and upgrade a total of 1.6 million additional passings to fiber-gigabit services over a five-year period.


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