Windstream Announces New Term Loan and Revolver Extension

Windstream Holdings II, LLC, (the "Company") today announced the completion of a new $250 million Super Senior Incremental Term Loan as well as a refinancing of its existing revolver that will extend the revolver maturity to 2027 from 2024.

In conjunction with the two transactions, the company's existing term loan is being transitioned from a London Interbank Offered Rate (LIBOR)-based interest calculation to a Secured Overnight Financing Rate (SOFR)-based interest calculation.

As part of the transactions, the company is paying down its outstanding revolver balance of approximately $115 million as of September 30, 2022, and the amended revolver will have $500 million of capacity through September 2024 and $475 million of capacity through January 2027.

"The new term loan and revolver extension will enable us to fully-fund our public-private partnerships and deliver gigabit broadband to consumers and small businesses in rural areas across our 18-state Kinetic region," said Drew Smith, chief financial officer and treasurer at Windstream. "These refinancing efforts provide Windstream a clear runway to execute our business plan, with no near-term debt maturities."

To date, Windstream has secured $295 million in funding commitments from governmental agencies that will help it deliver fiber broadband to over 140,000 locations. That drives the company's net cost per fiber location to approximately $1,000 in high-cost areas and represents a very attractive ROI for the business.

The company's new balance sheet now reflects no maturities prior to 2027 with net liquidity of approximately $546 million and a net debt to Adjusted EBITDA ratio of 2.4x, positioning Windstream with one of the strongest balance sheets in U.S. telecom.

About Windstream

Windstream Holdings is a privately held communications and software company. Windstream offers managed communications services, including SD-WAN and UCaaS, and high-capacity bandwidth and transport services to businesses across the U.S. The company also provides premium broadband, entertainment and security services through an enhanced fiber network to consumers and small and midsize businesses primarily in rural areas in 18 states. Additional information is available at www.windstream.com. Follow us on Twitter at @Windstream.

Category: Corporate