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Wells Fargo, Others Amend tw telecom Credit Agreement

April 19, 2013, 07:11 AM
Filed Under: Telecom

tw telecom inc. announced that its wholly-owned subsidiary tw telecom holdings executed a Second Amended and Restated Credit Agreement with a group of lenders  that amends and restates its 2010 Credit Agreement. The Amendment lists Wells Fargo Bank as administrative agent and collateral agent, Credit Suisse and Morgan Stanley Senior Funding as co-syndication agents and Wells Fargo Securities as sole lead arranger. Others in the deal include Royal Bank of Canada and SunTrust Bank as co-documentation agents.

The Amendment and Restatement increases and extends the approximately $462 million outstanding Term Loan B to $520 million with a new final maturity date of April 17, 2020.  In addition, the original $80 million undrawn Revolving Credit Facility was increased to $100 million with a new maturity date of April 17, 2018 and remains undrawn.

Interest on the Term Loan is computed based on a specified Eurodollar rate plus 2.50% and will be reset periodically and payable at least quarterly.  Interest on outstanding amounts of the Revolver, if any, will be computed based on a specified Eurodollar rate plus 1.75% to 2.75% and will be reset periodically and payable at least quarterly.

The Term Loan negative covenants were amended to substantially mirror the covenants contained in Holding's 5 3/8% Senior Notes due 2022. The Amendment and Restatement modified various Revolver covenants, including the restricted payments covenant, which now permits payments of up to $250 million annually for dividends, share repurchases and certain other payments absent defaults and subject to a liquidity test. As in the original Credit Agreement, the financial maintenance covenants in favor of the revolving lenders only apply if the Revolver is drawn.

The credit facilities are secured by a first priority security interest in substantially all of the assets of Holdings and guaranteed by the Company and its subsidiaries.

View the SEC Filing here.

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