AboveNet Closes New $250 Million Revolving Credit Facility
AboveNet, Inc. (NYSE: ABVT), a leading provider of high bandwidth connectivity solutions, today announced it has closed a new five-year $250 million senior secured revolving credit facility.
- (1888PressRelease) February 07, 2011 - The purpose of the credit facility is to provide the company with funds for general corporate purposes and to repay the company’s existing credit facility.
AboveNet initially drew down $55 million from the new facility which was principally used to repay all amounts outstanding under the existing secured credit facility, totaling $49.9 million, and to fund related debt acquisition costs.
Borrowings under the new senior secured revolving credit facility will carry interest, at the company’s option, of either the Administrative Agent’s Base Rate, as defined, plus the applicable margin ranging from 1.25 percent to 2 percent or LIBOR plus the applicable margin ranging from 2.25 percent to 3 percent, with the applicable margin being set based on the company’s leverage ratio.
The new facility contains certain affirmative, negative and financial covenants and customary events of default. The facility also provides for AboveNet to increase the aggregate principal by up to $125 million through one or more term loans or additional revolving credit, subject to the agreement of one or more lenders and other conditions set forth in the credit agreement.
Joe Ciavarella, AboveNet’s chief financial officer, said, “The new revolving credit facility gives us the continued flexibility to be able to execute our growth plans at attractive rates. We appreciate the support of the lenders who are participating in this facility.”
SunTrust led the syndication of the new $250 million credit facility.
About AboveNet, Inc.
AboveNet, Inc. provides high bandwidth connectivity solutions for business and carriers. Its private optical network delivers key network and IP services in and among top U.S. metro markets and globally. AboveNet's network is widely used in demanding markets such as financial services, media, health care, retail and government.
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Statements made in this press release that are not historical in nature constitute forward-looking statements within the meaning of the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. We cannot assure you that the future results expressed or implied by the forward-looking statements will be achieved. Such statements are based on the current expectations and beliefs of the management of AboveNet, Inc. and are subject to a number of risks and uncertainties that could cause actual results to differ materially from the future results expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to, the Company's financial and operating prospects, current economic trends, future opportunities, the Company's exposure to the financial services industry, and strength of competition and pricing. The Company's business could be materially adversely affected and the trading price of the Company's common stock could decline if these risks and uncertainties develop into actual events. The Company cautions you not to place undue reliance on these forward-looking statements, which speak only as of their respective dates. The Company undertakes no obligation to publicly update or revise forward-looking statements to reflect events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events. A more detailed discussion of factors that may affect the Company's business and future financial results is included in the Company's SEC filings, including, but not limited to, those described in "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Company's Annual Report on Form 10-K for the year ended December 31, 2009 and in the Company's subsequently filed Quarterly Report(s) on Form 10-Q.
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