PAETEC Cuts Debt By Another $10M

PAETEC (PAET) shares were down Thursday morning, despite the CLEC’s announcement that it has paid off $10 million in debt early.

The Rochester, N.Y.-based provider’s stock price hit $3.90, down 1.02 percent, by 10:41 a.m. Eastern.

But that’s a temporary situation and PAETEC made it clear it’s looking toward the long-term.

“We are confident that we have the company well-positioned both financially and operationally for a more robust 2010,” Arunas Chesonis, the company’s chairman and CEO, said in a prepared statement.

This marks the second time in six months PAETEC has slashed its debt load. Since the end of 2009’s second quarter, the company has reduced its borrowing by $20 million.

A lighter debt load should serve PAETEC well. Like its peers, the service provider has struggled through the recession; it reported $6.5 million in losses in the third quarter, for example. And, a year ago, executives were forced to lay off more than 200 workers.

Still, those numbers total far less than what many other telecom companies have suffered since the economic collapse that started in 2007.



Leave a comment

Your email address will not be published. Required fields are marked *

The ID is: 80370