Consolidated Communications Secures Incremental Term Loan Financing of $150 million

Rhea-AI Summary

Consolidated Communications (NASDAQ: CNSL) has successfully closed an incremental $150 million term loan, fungible with its existing First Lien Term Loan B expiring in October 2027. The loan bears interest at a rate of LIBOR plus 4.75% per annum, with a 1.0% LIBOR floor. CFO Steve Childers expressed satisfaction with the financing terms, noting that this funding enhances liquidity and supports the company's growth strategy focused on expanding fiber infrastructure.

Positive

• Secured incremental $150 million term loan to enhance liquidity.
• Loan terms are attractive with interest at LIBOR plus 4.75%.
• Supports the fully funded growth plan for fiber builds.

Negative

• None.

Consolidated Communications (NASDAQ: CNSL) today announced it 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 similar to 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% per annum with a 1.0% 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, chief financial officer 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.

About Consolidated Communications

Consolidated Communications Holdings, Inc. (NASDAQ: CNSL) is a leading broadband and business communications provider serving consumers, businesses, and wireless and wireline carriers across rural and metro communities and a 23-state service area. Leveraging an advanced fiber network spanning 46,300 fiber route miles, Consolidated Communications is a top-10 fiber provider in the U.S. offering a wide range of communications solutions, including: high-speed Internet, data, phone, security, managed services, cloud services and wholesale, carrier solutions. From our first connection 125 years ago, Consolidated is dedicated to turning technology into solutions, connecting people and enriching how they work and live. Visit www.consolidated.com for more information.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210115005479/en/

FAQ

What is the latest financing announcement from Consolidated Communications (CNSL)?

Consolidated Communications announced it has closed an incremental $150 million term loan that is fungible with its existing First Lien Term Loan B maturing in October 2027.

What are the terms of the new term loan for CNSL?

The new term loan bears interest at LIBOR plus 4.75% per annum, with a 1.0% LIBOR floor.

How does the new loan impact Consolidated Communications' growth plans?

The incremental financing enhances liquidity and supports a fully funded growth plan focused on accelerating fiber infrastructure builds.