Consolidated Communications Announces Renewal of Revolving Credit Facility | Wbactive

Consolidated Communications Holdings, Inc. (Nasdaq: CNSL) (the “Company”) announced the next step in positioning the Company to continue executing its Fiber-to-the-Premise (FttP) expansion plan to modernize 1.6 million sites by the end of 2025.

Consolidated has extended the term of its $250 million revolving credit facility (the “Revolver”) by two years from 2025 to 2027, subject to early maturity, and improved its financial flexibility under the Revolver.

Consolidated is in the process of upgrading its home and small business networks to fiber. To date, the company has expanded fiber to approximately 34% of its residential and small business locations, up from 10% at the end of 2020. This fiber expansion is expected to position the company for growth by improving its competitive position by upgrading fiber to 70% of its addressable locations. Consolidated is well positioned to capitalize on the FttP opportunity with significant liquidity and significant financial flexibility.

In connection with the transactions described herein Searchlight Capital Partnersa strategic investor in the FttP sector and a significant investor in Consolidated, waived the company’s obligation to begin paying in cash for two years through 2027, instead accruing dividends on the Series A preferred stock in 2025.

away September 30, 2022Consolidated had passed $775 million of total pro forma liquidity. This is inclusive of the gross $490 million the gross proceeds from the sale of its interests in wireless limited partnerships that are pending Kansas City Asset sale and about $225 million Availability under the turret. In addition, a unrestricted subsidiary of the Company has remitted the net cash proceeds from the sale of the Company’s Wireless Limited Partnership interest to the Restricted Credit Group.

As a result of these transactions, Consolidated does not face any debt maturities until 2027.

Further details of the amended loan agreement are provided on the Company’s Form 8-K filed with U.S. Securities and Exchange Commission.

Around Consolidated communication

Consolidated Communications Holdings, Inc. (NASDAQ: CNSL) is dedicated to moving people, businesses and communities forward by providing the most reliable fiber optic communications solutions. Consumers, businesses, and mobile and fixed-line operators rely on Consolidated for a wide range of high-speed internet, data, voice, security, cloud and wholesale carrier solutions. With a network spanning more than 57,500 fiber route miles, Consolidated is one of the top 10 fiber providers in the US, converting technology into solutions backed by exceptional customer support. Learn more at consolidated.com.

Forward-Looking Statements

Certain statements in this release are forward-looking statements and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect, among other things, our current expectations, plans, strategies and financial results. There are a number of risks, uncertainties and conditions that could cause our actual results to differ materially from those expressed or implied by these forward-looking statements. These risks and uncertainties include a number of factors related to our business, including uncertainties related to the impact of the novel coronavirus (COVID-19) pandemic on the Company’s business, results of operations, cash flows, share price and employees ; the possibility that one of the expected benefits of the strategic investment out Searchlight Capital Partners, LP or our refinancing of outstanding debt, including our senior secured credit facilities, or sale of the limited partnership interest is not realized; the expected use of the proceeds from the strategic investment or the sale of the limited partner’s shares; the outcome of any legal proceedings that may be instituted against the company or its directors; economic and financial market conditions generally and economic conditions in our service areas; various risks related to the price and volatility of our common stock; changes in the valuation of pension plan assets; the substantial amount of debt and our ability to repay or refinance it or incur additional debt in the future; our need for a substantial amount of cash to service and repay the debt limits contained in our debt covenants, which limit management’s discretion in operating the business; regulatory changes, including subsidy changes, rapid development and adoption of new technologies and intense competition in the telecommunications industry; risks related to our potential pursuit or failure to make acquisitions or divestitures; system failures; cyber attack, information or security breach or technology failure by us or a third party; loss of major customer or government contracts; risks related to rights of way for the network; disruptions in relationships with third parties; losses of key executives and the inability to attract and retain highly qualified management and personnel in the future; changes in the extensive governmental laws and regulations governing telecommunications providers and the provision of telecommunications services; new or changing tax laws or regulations; telecommunications providers who dispute and/or avoid their obligation to pay network access fees for using our network; high cost of regulatory compliance; the competitive impact of laws and regulatory changes in the telecommunications industry; liability and compliance costs related to environmental regulations; Risks related to the cessation of payment of dividends on our common stock and the possibility that warrants on our Series A preferred stock adversely affect our cash flows. A more detailed discussion of these and other risks and uncertainties that could cause actual results and events to differ materially from such forward-looking statements is contained in our filings with Securities and Exchange Commission (‘SEC‘), including our reports on Form 10-K and Form 10-F. Many these circumstances are beyond our control or prediction. In addition, forward-looking statements necessarily involve assumptions on our part. These forward-looking statements are generally identified by the words ‘believe’, ‘expect’, ‘anticipate’, ‘estimate’, ‘project’, ‘intend’, ‘plan’, ‘should’, ‘may’, ‘will’, ‘ ‘would’, ‘will be’, ‘will continue’ or similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause the Company’s and its subsidiaries’ actual results, performance or achievements to differ from those expressed or implied by the forward-looking statements. All forward-looking statements, whether or not attributable to us or persons acting on our behalf, are expressly qualified in their entirety by the cautionary statements that appear in this release. In addition, forward-looking statements speak only as of the date they are made. Except as required under the federal securities laws or the rules and regulations of the SEC, we disclaim any intention or obligation to publicly update or revise any forward-looking statements. You should not place undue reliance on forward-looking statements.

Contact:

Philip Kranz

Phone: +1 217-238-8480

Email: philip.kranz@consolidated.com

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