HickoryTech gets $150 million secured credit facility via CoBank

By Sara Rosenberg

New York, Aug. 11 - HickoryTech Corp. closed on a new $150 million secured credit facility due Dec. 31, 2016 that consists of a $120 million term loan B and a $30 million revolver, according to a news release.

CoBank ACB acted as the lead arranger, bookrunner and administrative agent on the deal. Union Bank acted as syndication agent with Sun Trust Bank as documentation agent.

Pricing on the facility is Libor plus 300 basis points with no Libor floor.

Starting on Dec. 31 and on the last day of each quarter thereafter, the company is required to make quarterly amortization payments of $300,000 on the term loan B.

Financial covenants include a leverage ratio of less than 3.5 to 1.0 and a debt service coverage ratio of greater than 2.5 to 1.0.

Proceeds were used to refinance existing debt and will be available to fund the company's growth strategy.

HickoryTech is a Mankato, Minn.-based provider of integrated communications services.

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