Alaska Communications receives consents to amend 9 7/8% notes

New York, Feb. 22 - Alaska Communications Systems Group, Inc. said its Alaska Communications Systems Holdings, Inc. subsidiary obtained the necessary consents to amend its $56.9 million principal amount of 9 7/8% senior notes due 2011.

By the consent deadline of 5 p.m. ET on Feb. 21, holders had tendered $52.9 million of the notes.

Funding will come from an amendment to the company's $375 million term loan that will increase the size by $52.9 million and reduce the interest rate by 25 basis points to Libor plus 175 basis points. Alaska Communications swapped that $52.9 million to a fixed rate of 6.75%.

Alaska Communications announced on Feb. 7 it was tendering for the notes and said it was also soliciting consents to amend the note indenture to eliminate substantially all of the restrictive covenants and eliminate most events of default other than for failure to make payments of interest or principal.

Holders who tendered before the consent deadline of 5 p.m. ET on Feb. 21 will receive $1,105.00 per $1,000 principal amount including a consent payment of $30.00 per $1,000.

Holders who tender after the consent deadline but before the expiration of 9 a.m. ET on March 8 will receive $1,075.00 per $1,000 principal amount.

Alaska Communications is making the tender offer as part of a refinancing of part of its existing debt. Funding will come from borrowings under the company's senior secured credit facility and cash on hand. At the time of the announcement, the company said the $375 million term loan would be increased by $57 million as part of the planned transactions.

The tender offer and consent solicitation are subject to the receipt of tenders and consents for a majority of the notes, entering into the amendment to the senior secured credit facility and other customary general conditions.

J.P. Morgan Securities Inc. (866 834-4666 or 212 834-4388) and CIBC World Markets Corp. (212 885-3745) are dealer managers and solicitation agents, and Global Bondholder Services Corp. is depositary (800 558-3745).

Alaska Communications is an Anchorage, Alaska, communications company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.