By Angela McDaniels
Tacoma, Wash., Oct. 8 - XO Holdings, Inc. said its subsidiary, XO Communications, LLC, will receive up to $50 million through a revolving promissory note with Arnos Corp., a company owned by XO Holdings chairman Carl Icahn.
The note will mature on the earliest of (i) Oct. 8, 2011, (ii) the date on which the company or an affiliate completes a debt or equity financing transaction that raises $50 million or more and (iii) any date chosen by the company that is earlier than Oct. 8, 2011.
The interest rate is the greater of 6.75% and Libor plus 525 basis points. There is a fee of 0.75% on undrawn amounts.
The company said the revolver provides XO Communications with increased financial flexibility.
Herndon, Va.-based XO provides managed voice, data and IP services to businesses and communications services providers.
| Issuer: | XO Communications, LLC
|
| Issue: | Revolving promissory note
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| Amount: | Up to $50 million
|
| Maturity: | Earlier of Oct. 8, 2011 and the date on which the company raises at least $50 million through a debt or equity financing
|
| Coupon: | Greater of 6.75% and Libor plus 525 bps
|
| Price: | Par
|
| Call option: | At any time
|
| Investor: | Arnos Corp.
|
| Announcement date: | Oct. 8
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