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Lumos Networks Corp. Completes $425M Debt Refinancing



  Lumos Networks Corp. Completes $425M Debt Refinancing

      Enhances Liquidity for Continued Expansion of Dense Fiber Network

 Reduces Interest Rate, Extends Debt Maturities and Increases Leverage Ratio

               Bolsters Balance Sheet with $52 Million in Cash

Business Wire

WAYNESBORO, Va. -- April 30, 2013

Lumos Networks Corp. (“Lumos Networks” or “the Company”) (Nasdaq: LMOS), a
fiber-based service provider of data, voice and IP-based telecommunication
services in the Mid-Atlantic region, today announced it has successfully
refinanced its prior senior credit facility with a new $425 Million Credit
Facility, consisting of a $100 million senior secured five-year term loan
(“Term Loan A”), a $275 million senior secured six-year term loan (“Term Loan
B”) and a $50 million senior secured five-year revolving Credit Facility
(“Revolver”). No borrowings are outstanding under the revolver.

Term Loan A and the Revolver are priced at LIBOR plus 3.00% and Term Loan B is
priced at LIBOR plus 3.25%. This new facility replaces Lumos Networks’
existing Credit Facility dated September 8, 2011. The current weighted,
blended interest rate for Lumos Networks is expected to decrease from 3.8% to
approximately 3.5%.

“The completion of our debt refinancing represents a key milestone in the
continued transformation of Lumos Networks and helps to set the stage for the
next phase of growth of our Strategic Data products over our expanding and
dense regional fiber network,” said Tim Biltz, CEO of Lumos Networks. “I am
confident that this financing will enhance our capability to meet our
customer’s demands for fiber-based bandwidth in our key target market segments
of Enterprise and Carrier Data.”

Mr. Biltz continued, “Our new credit facility significantly enhances our
financial flexibility. We were able to lower our current blended interest rate
and bring more than $50 million in cash onto our balance sheet. Additionally,
we were able to increase our leverage ratio and extend our principal debt
repayments.”

The table below provides a summary of certain key terms of the current and
prior financing arrangements. The summary is not intended to be comprehensive
and is qualified by reference to the Credit Agreement filed as an exhibit to
the Company’s Current Report on Form 8-K dated April 30, 2013.

                                                                    
                  Prior                         Current Credit
                  Credit
                                                Facility
                  Facility
Borrowed
Amount
Term Loan A       $110m                         $100m
Term Loan B       $200m                         $275m
Revolver          $60m                          $50m
Total             $370m                         $425m
                                                                      
Current
Weighted Avg.     ~3.8%                         ~3.5%
Interest Rate
                                                                      
Loan Maturity
Date
Term Loan A       2017                          2018
Term Loan B       2017                          2019
Revolver          2016                          2018
                                                                      
Maximum           Through         4.00:1.00     Through 12/31/13     4.75:1.00
Leverage          9/30/13
                  Thereafter      3.75:1.00     1/1/14-12/31/14      4.50:1.00
                                                1/1/15-12/31/15      4.25:1.00
                                                Thereafter           4.00:1.00
                                                                      
Minimum
Interest          3.25:1.00                     3.25:1.00
Coverage
Ratio
                                                                      
Amortization
(Loan A&B)
2013              $7.5m                         $1.375m
2014              $7.5m                         $5.25m
2015              $13m                          $7.75m
2016              $90m                          $7.75m
2017              $189.5m                       $12.75m
2018              N/A                           $80.25m
2019              N/A                           $259.875m
                                                                      

About Lumos Networks

Lumos Networks is a fiber-based service provider in the Mid-Atlantic region
serving carrier, business and residential customers over a dense fiber network
offering data, voice and IP services. With headquarters in Waynesboro, VA,
Lumos Networks serves Virginia, West Virginia and portions of Pennsylvania,
Kentucky, Ohio, and Maryland over a fiber network of approximately 5,800 long
haul miles. Detailed information about Lumos Networks is available at
www.lumosnetworks.com.

SPECIAL NOTE FROM THE COMPANY REGARDING FORWARD-LOOKING STATEMENTS

Any statements contained in this presentation that are not statements of
historical fact, including statements about our beliefs and expectations, are
forward-looking statements and should be evaluated as such. The words
“anticipates,” “believes,” “expects,” “intends,” “plans,” “estimates,”
“targets,” “projects,” “should,” “may,” “will” and similar words and
expressions are intended to identify forward-looking statements. Such
forward-looking statements reflect, among other things, our current
expectations, plans and strategies, and anticipated financial results, all of
which are subject to known and unknown risks, uncertainties and factors that
may cause our actual results to differ materially from those expressed or
implied by these forward-looking statements. Many of these risks are beyond
our ability to control or predict. Because of these risks, uncertainties and
assumptions, you should not place undue reliance on these forward-looking
statements. Furthermore, forward-looking statements speak only as of the date
they are made. We do not undertake any obligation to update or review any
forward-looking information, whether as a result of new information, future
events or otherwise. Important factors with respect to any such
forward-looking statements, including certain risks and uncertainties that
could cause actual results to differ from those contained in the
forward-looking statements, include, but are not limited to: rapid development
and intense competition in the telecommunications industry; our ability to
achieve benefits from our separation from NTELOS Holdings Corp in 2011; our
ability to offset expected revenue declines in legacy voice and access
products related to the recent regulatory developments and carriers grooming
their networks; adverse economic conditions; operating and financial
restrictions imposed by our senior credit facility; our cash and capital
requirements; declining prices for our services; the potential to experience a
high rate of customer turnover; federal and state regulatory fees,
requirements and developments; our reliance on certain suppliers and vendors;
and other unforeseen difficulties that may occur. These risks and
uncertainties are not intended to represent a complete list of all risks and
uncertainties inherent in our business, and should be read in conjunction with
the more detailed cautionary statements and risk factors included in our SEC
filings, including our Annual Reports filed on Forms 10-K.

Contact:

Lumos Networks Corp.
Will Davis
Director of Investor Relations
Office: 540-946-6930
Cell: 917-519-6994
Email: davisw@lumosnet.com
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