ITC^DeltaCom secures $29 million from private placement of stock

By Sheri Kasprzak

New York, June 11 - ITC^DeltaCom, Inc. will complete a $29 million private placement of stock with affiliates of Credit Suisse.

The Credit Suisse affiliates also agreed to provide $240 million in first-lien credit facilities as part of the recapitalization.

Also connected with the offering, funds associated with Tennenbaum Capital Partners, LLC agreed to provide a $75 million second-lien credit facility and to exchange $25 million in third-lien debt, as well as all preferred shares and warrants, for common stock.

Finally, funds associated with Welsh, Carson, Anderson & Stowe, the company's majority shareholder, agreed to buy $21 million in common shares and exchange $23.5 million in third-lien debt, as well as all preferreds and warrants, for common stock.

Once the refinancing is completed, the company will have $305 million in first- and second-lien debt, a $10 million revolving credit facility, roughly 81 million outstanding fully diluted common shares and $50 million of cash on hand.

The full terms of the stock sales were unavailable Monday.

Based in Huntsville, Ala., ITC^DeltaCom is an integrated communications services provider focused on the southeastern United States.

The company's stock dove by $1.15, or 16.67%, on Monday to close at $5.75 (OTCBB: ITCD).

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