ITC^DeltaCom, Inc. , a leading provider of integrated communications services to customers in the southeastern United States, today announced that it has completed its previously announced debt and equity financing transactions. The transactions completely refinance or retire substantially all of the Company's outstanding funded debt, reduce annual borrowing costs by approximately $25 million and simplify the Company's balance sheet by eliminating all series of previously authorized preferred stock and substantially all related stock warrants. The transactions leave the Company with $305 million of funded first and second lien credit facility debt, a $10 million undrawn revolver and approximately $50 million in unrestricted cash.
The refinancing and recapitalization transactions include the following principal debt and equity components: (1) the issuance of $240 million of first lien debt in the form of a $230 million syndicated first lien credit facility and a $10 million undrawn revolving credit facility; (2) the issuance of $75 million of second lien debt to investment funds managed by Tennenbaum Capital Partners, LLC ("Tennenbaum");
