Consolidated Communications solicits consents to amend 10 7/8% notes

By Marisa Wong

Madison, Wis., March 20 - Consolidated Communications Holdings, Inc. announced that its subsidiary, Consolidated Communications, Inc., began a consent solicitation on Wednesday to amend its 10 7/8% senior notes due 2020.

Consolidated Communications is soliciting consents from noteholders in order to modify the consolidated leverage ratio level required before it can make restricted payments otherwise available under the consolidated cash flow builder basket and modify the size of a permitted lien basket for liens securing indebtedness by amending the multiplier for its consolidated cash flow in the calculation of that permitted lien basket.

The company is proposing to change the consolidated leverage ratio level to 4.5 to 1 from 4.25 to 1 and the multiplier for its consolidated cash flow to 2.75 from 2.5.

The company said that if the proposed amendments are adopted, it will benefit from greater financial and operational flexibility and capacity.

Holders who consent to the proposed changes by 5 p.m. ET on April 1 will be eligible to receive a $10 consent fee per $1,000 principal amount.

Holders may revoke consents at any time prior to the earlier of 5 p.m. ET on April 1 and the time at which the necessary consents have been received.

The company needs consents from holders of a majority in principal amount of the outstanding notes in order to execute a supplemental indenture giving effect to the amendments.

Holders must be of record as of 5 p.m. ET on March 18 in order to participate.

Morgan Stanley (212 761-1057 or 800 624-1808) is the solicitation agent. Global Bondholder Services (212 430-3774 or 866 804-2200) is the tabulation and information agent.

The communications provider is based in Mattoon, Ill.

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