Offering slated to fund debt repayment and general corporate purposes
By Devika Patel
Knoxville, Tenn., Aug. 6 – Lumos Networks Corp. settled a $150 million private placement of 8% notes due Aug. 15, 2022 with Lumos Debt Holdings, LP on Aug. 6, according to an 8-K filing with the Securities and Exchange Commission. The deal priced on Aug. 5.
Interest is payable in cash or in kind.
The company may prepay the notes at 108.
Lumos Debt also received warrants for 5.5 million shares, which are each exercisable at $13.99 until Aug. 6, 2022. The strike price reflects a 0.29% discount to the closing share price on Aug. 4, $14.03.
Proceeds will be used to pay off a portion of the company’s credit facility and for general corporate purposes, including growth opportunities.
Waynesboro, Va.-based Lumos Networks provides fiber-based data, voice and IP-based telecommunication services for the Mid-Atlantic region.
| Issuer: | Lumos Networks Corp.
|
| Issue: | Notes
|
| Amount: | $150 million
|
| Maturity: | Aug. 15, 2022
|
| Coupon: | 8%, payable quarterly in cash or in kind
|
| Call option: | At 108
|
| Warrants: | For 5.5 million shares
|
| Warrant expiration: | Aug. 6, 2022
|
| Warrant strike price: | $13.99
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| Investor: | Lumos Debt Holdings, LP
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| Pricing date: | Aug. 5
|
| Settlement date: | Aug. 6
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| Stock symbol: | Nasdaq: LMOS
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| Stock price: | $14.03 at close Aug. 4
|
| Market capitalization: | $287.83 million
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