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Lumos Networks Completes $425MM Debt Refinancing wth Co-Bank, Others

May 01, 2013, 08:00 AM
Filed Under: Telecom

Lumos Networks Corp. ("Lumos Networks" or "the Company"), a fiber-based service provider of data, voice and IP-based telecommunication services in the Mid-Atlantic region, today announced it has successfully refinanced its prior senior credit facility with a new $425 Million Credit Facility, consisting of a $100 million senior secured five-year term loan ("Term Loan A"), a $275 million senior secured six-year term loan ("Term Loan B") and a $50 million senior secured five-year revolving Credit Facility ("Revolver"). No borrowings are outstanding under the revolver.

CoBank served as Lead Arranger, Administrative Agent, Collateral Agent, and Bookrunner.  Fifth Third Bank served as Syndication Agent and Union Bank and Royal Bank of Canada served as Documentation Agents.
Term Loan A and the Revolver are priced at LIBOR plus 3.00% and Term Loan B is priced at LIBOR plus 3.25%. This new facility replaces Lumos Networks' existing Credit Facility dated September 8, 2011. The current weighted, blended interest rate for Lumos Networks is expected to decrease from 3.8% to approximately 3.5%.
"The completion of our debt refinancing represents a key milestone in the continued transformation of Lumos Networks and helps to set the stage for the next phase of growth of our Strategic Data products over our expanding and dense regional fiber network," said Tim Biltz, CEO of Lumos Networks. "I am confident that this financing will enhance our capability to meet our customer's demands for fiber-based bandwidth in our key target market segments of Enterprise and Carrier Data."
Mr. Biltz continued, "Our new credit facility significantly enhances our financial flexibility. We were able to lower our current blended interest rate and bring more than $50 million in cash onto our balance sheet. Additionally, we were able to increase our leverage ratio and extend our principal debt repayments."
Lumos Networks is a fiber-based service provider in the Mid-Atlantic region serving carrier, business and residential customers over a dense fiber network offering data, voice and IP services. With headquarters in Waynesboro, VA, Lumos Networks serves Virginia, West Virginia and portions of Pennsylvania, Kentucky, Ohio, and Maryland over a fiber network of approximately 5,800 long haul miles.

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