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tw telecom Joins Other Providers in Refinancing Debt

tw telecom inc. (TWTC) shares closed 3.6 percent higher, at $17.56, on Friday after the Denver-based CLEC started selling $430 million worth of senior notes.

tw telecom aims to pay off debt with a 2014 due date and a 9.25 percent interest rate. The new offering comes with an 8 percent interest rate and matures in 2018.

The offering will close March 17.

Several CLECs are taking advantage of a market that seems to be loosening its purse strings to refinance their debt. Birch Telecom said in December it wants to raise $100 million, Level 3 Communications is working to raise $640 million and Qwest is doing a $1.2 billion debt buy-back. CLEC Deltacom, however, recently pulled its plans for a debt offering, saying the cost of capital had grown too high.


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