Consolidated Communications gets needed consents for 10 7/8% notes

By Susanna Moon

Chicago, April 2 - Consolidated Communications Holdings, Inc. said subsidiary Consolidated Communications, Inc. obtained the needed consents to amend its 10 7/8% senior notes due 2020.

The solicitation ended at 5 p.m. ET on April 1. The offer began March 20.

As previously announced, the consent fee is $10 per $1,000 principal amount.

Consolidated Communications solicited consents from noteholders 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 sought to change the consolidated leverage ratio level to 4.5 times from 4.25 times and the multiplier for its consolidated cash flow to 2.75 from 2.5.

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

The company needed consents from holders of a majority of the outstanding notes in order to execute a supplemental indenture to the notes.

Holders needed to 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) was the solicitation agent. Global Bondholder Services (212 430-3774 or 866 804-2200) was the tabulation and information agent.

The communications provider is based in Mattoon, Ill.

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