ITC^DeltaCom plans to raise $21 million via placement of first-lien notes

By Jennifer Chiou

New York, Oct. 30 - ITC^DeltaCom, Inc. announced it entered into an amendment to its first-lien senior secured note purchase agreement, which will provide $21 million of new funding through a private placement.

The Huntsville, Ala., telecommunications and technology services provider will issue the additional first-lien senior secured notes with institutional investors.

The new notes will have the same payment terms as the $209 million of first-lien notes the company issued on July 26, 2005, ITC^DeltaCom said, adding that no scheduled principal payments will be due on the additional first-lien notes before maturity on July 26, 2009.

Proceeds will go to support sales growth through increased capital expenditures, to upgrade network facilities and to expand the company's internet protocol network.

"This new financing and additional liquidity will provide us with the capital necessary to continue our pursuit of growth in our core facilities-based business as well as increase focus on the wholesale and enterprise sectors," chief executive officer Randall E. Curran said in a news release.

The issue is expected to be complete in the fourth quarter.

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