ITC^DeltaCom Announces Financing Commitment

ITC^DeltaCom Inc., the telecommunications provider in the Southeast, on Tuesday announced arranging a $239 million financing commitment from Tennenbaum Capital Partners LLC, a private investment firm.

West Point, Ga.-based ITC^DeltaCom said it would use $209 million to fully refinance its senior credit facility while $30 million would be extended as a subordinated secured loan and used for general corporate purposes.

The development comes two months after ITC^DeltaCom disclosed restructuring $260 million of secured debt and arranging a $20 million loan from its majority shareholder, Welsh, Carson, Anderson & Stowe.

As part of the most recent agreement, ITC^DeltaCom will issue Tennenbaum warrants to purchase up to 9 million shares of a new issue of preferred stock, which initially will be convertible to 12 million shares of common stock. Tennenbaum also will have the right to name two members to ITC^DeltaComs board of directors after the agreements close.

ITC^DeltaCom last week disclosed that its common stock could be delisted from the Nasdaq if it did not maintain a minimum market value of $15 million. Shares of ITC^DeltaCom were trading Tuesday at 58 cents.

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