PAETEC Holding Corp. (NASDAQ GS: PAET) has closed its previously announced senior secured notes offering. The Company issued senior secured notes in an aggregate principal amount of $350 million in a private offering to institutional investors. The senior secured notes have a fixed interest rate of 8 7/8% and mature in 2017.
“We were pleased that the offering was well-received by the debt market, which enabled us to complete the offering within a short timeframe,” said Arunas A. Chesonis, chairman and CEO. “By extending our debt maturities, we now have enhanced financial flexibility to invest in our network, customer support, and expansion of our product suite. Over our 11 years, our conservative fiscal management has allowed PAETEC to thrive in times where others have not.”
As previously announced, the Company used the net proceeds from the offering to repay a portion of the loans outstanding under PAETEC’s existing senior secured term loan credit facility.
“PAETEC’s history of disciplined financial management has enabled the Company to access the capital markets opportunistically,” said Keith Wilson, chief financial officer. “The continued support from the financial community is a solid validation of our long term strategy and being a competitive communications market leader.”
Additional information about the senior secured notes offering will be contained in the Company’s current report on Form 8-K to be filed with the Securities and Exchange Commission. [click to read the rest…]
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