California-based CLEC TelePacific Communications has raised $395 million in credit to pay down bank debt that was coming due and to fund general corporate operations – including M&A.
The privately held TelePacific secured a $370 million loan, due August 2015, and a $25 revolving line of credit, it said on Feb. 18.
The refinancing came at a good time – TelePacific had debt coming due in 2011 and 2012, and the new influx was better-priced.
“This facility makes it easier for TelePacific to expand its product set and invest more quickly in value-creating projects like … Ethernet-over-copper development and mobile services, and provides greater flexibility to pursue acquisitions than the previous senior credit facility,” CFO Tim Medina said in a prepared statement.
Moody’s Investor Service rated the deal a B2, TelePacific said, which is one of the firm’s speculative grade or high-yield standards.
Credit Suisse Securities, Deutsche Bank Securities, Banc of America Securities and Credit Suisse AG all helped TelePacific arrange the deal.
TelePacific targets business customers in California and Nevada. The company says it serves more than 39,000 SMB accounts with more than 1.1 million access-line equivalents. Last year’s revenue jumped to $452.2 million, up from $443.9 million in 2008, TelePacific said.
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February 15 2019 @ 14:45:26 UTC