tw telecom Successfully Executes Amended and Restated Credit Agreement
- Upsizes Revolver to $100 million and Term Loan to $520 million
- Achieves extended maturities and lower borrowing rate
LITTLETON, Colo., April 18, 2013
LITTLETON, Colo., April 18, 2013 /PRNewswire/ -- tw telecom inc. (NASDAQ:
TWTC) today announced that its wholly-owned subsidiary tw telecom holdings
inc. ("Holdings"), executed a Second Amended and Restated Credit Agreement
with a group of lenders ("Amendment and Restatement") that amends and restates
its 2010 Credit Agreement (the "Credit Agreement").
The Amendment and Restatement increases and extends the approximately $462
million outstanding Term Loan B (the "Term Loan") to $520 million with a new
final maturity date of April 17, 2020. In addition, the original $80 million
undrawn Revolving Credit Facility (the "Revolver") was increased to $100
million with a new maturity date of April 17, 2018 and remains undrawn.
Interest on the Term Loan is computed based on a specified Eurodollar rate
plus 2.50% and will be reset periodically and payable at least quarterly.
Interest on outstanding amounts of the Revolver, if any, will be computed
based on a specified Eurodollar rate plus 1.75% to 2.75% and will be reset
periodically and payable at least quarterly.
The Term Loan negative covenants were amended to substantially mirror the
covenants contained in Holding's 5 3/8% Senior Notes due 2022. The Amendment
and Restatement modified various Revolver covenants, including the restricted
payments covenant, which now permits payments of up to $250 million annually
for dividends, share repurchases and certain other payments absent defaults
and subject to a liquidity test. As in the original Credit Agreement, the
financial maintenance covenants in favor of the revolving lenders only apply
if the Revolver is drawn.
The credit facilities are secured by a first priority security interest in
substantially all of the assets of Holdings and guaranteed by the Company and
Below is a summary of certain key terms of the Amendment and Restatement. The
summary is not intended to be comprehensive and is qualified by reference to
the Amendment and Restatement filed as an exhibit to the Company's Current
Report on Form 8-K dated April 18, 2013.
Term Loan $462 M $520 M
Revolver $ 80 M $100 M
Term Loan 12/30/2016 4/17/2020
Revolver 12/31/2014 4/17/2018
Term Loan Eurodollar Rate + Eurodollar Rate +
Revolver Eurodollar Rate + Eurodollar Rate +
2.50 -3.50% 1.75-2.75%
& Other Restricted (1)
Annual $150 M $250 M
Carryover of Unused $ 50 M $100 M
(1) Subject to Liquidity Test; Annual Restricted Payment basket limits under
the Revolver for 2013 are from April 17, 2013 to year end.
About tw telecom
tw telecom, headquartered in Littleton, Colo., is a leading national provider
of managed services, including Business Ethernet, converged and IP VPN
solutions for enterprises throughout the U.S. and globally. tw telecom also
delivers secure, scalable private connections for transport data networking,
Internet access, voice, VPN, VoIP and security to large organizations and
communications services companies. Employing a resilient fiber network
infrastructure, robust product portfolio and its own Intelligent Network
capabilities, tw telecom delivers customers overall economic value, an
industry-leading quality service experience, and improved business
productivity. Please visit www.twtelecom.comfor more information.
SOURCE tw telecom
Contact: Investor Relations: Carole Curtin, 303- 542-4441,
firstname.lastname@example.org or Media Relations: Bob Meldrum, 303 566-1354,
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