Eschelon Telecom price talk 11¾% area on restructured $100 million offering

By Paul A. Harris

St. Louis, March 9 - Price talk of in the area of 11¾% was heard Tuesday on a restructured $100 million six-year notes offering from Eschelon Telecom.

The Minneapolis-based voice, data and internet services provider will now sell senior second lien secured notes, according to an informed source who added that the notes will be secured by a second lien. Previously the company intended to offer senior unsecured notes.

Eschelon Telecom plans to raise $85 million of proceeds with the sale, which is expected to be completed at a discount on Wednesday afternoon.

Jefferies & Co. and Wachovia Securities are underwriters.

Proceeds will be used to repay bank debt.

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