FairPoint seeks to amend and restate loan, obtaining new $100 million facility

By Sara Rosenberg

New York, Feb. 19 - FairPoint Communications Inc. plans to amend and restate its credit agreement to provide for a new $70 million revolver, of which $50 million is already committed, and a new $30 million term loan A.

The new facility is part of the company's refinancing plan, which also includes the private placement of senior notes for $225 million in gross proceeds, the repayment in full of all borrowings under the existing revolver, acquisition credit facility and term loan B, a rescheduled amortization of the term loan C, less restrictive covenants in the credit agreement, the repayment of $2.2 million of indebtedness under the FairPoint Solutions credit facility and the elimination of certain amortization requirements under the FairPoint Solutions facility, according to a filing with the Securities and Exchange Commission.

"The company believes that successful completion of the refinancing will improve its financial and operating flexibility and enhance its ability to pursue its business strategy," the filing said.

FairPoint is a Charlotte, N.C. provider of telecommunications services in rural communities.

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