NuVox Communications, a leading communications provider to business customers throughout the Southeast and Midwest, today announced that it has closed a $95 million senior secured credit facility, consisting of an $85 million 6-year term loan and a $10 million 5-year revolving credit facility. The proceeds from the new facility will be used to refinance certain existing indebtedness and for general corporate purposes.
“This financing positions NuVox to rapidly expand the deployment of VoxIP, our voice over Internet protocol (VoIP) offering. VoxIP, which was introduced in 2005, now represents approximately 10% of sales to new customers,” commented Jim Akerhielm, Chief Executive Officer of NuVox Communications. “Over the past year, NuVox has made major investments in the network infrastructure and back-office platforms necessary to provide a fully-managed, private network-based VoIP solution to our customers. This financing will enable us to significantly accelerate our VoxIP sales and marketing efforts in the second half of 2006.”
Steve Shoemaker, Chief Financial Officer of NuVox Communications added, “This financing substantially improves our financial flexibility and liquidity position. We will continue to have modest financial leverage after this transaction, and are provided with additional capital resources for organic and acquisitive growth. This broadly syndicated transaction involving over 15 institutions demonstrates the financial community’s confidence in our business plan and VoIP strategy.”
NuVox recently received a B2 rating from Moody’s Investors Service and a B- rating from Standard & Poor’s on this new $95 million senior secured credit facility.
The credit facility was syndicated by a group of financial institutions led by Wachovia Bank, N.A., which served as Administrative Agent and Wachovia Capital Markets, LLC as the Sole Lead Arranger and Joint Book Manager. CIT Lending Services Corporation was Syndication Agent and Joint Book Manager, and Deutsche Bank Securities Inc. served as Documentation Agent. Q Advisors LLC acted as financial advisor to NuVox Communications.
About NuVox Communications:
NuVox Communications provides voice, data, and security services to business customers in Alabama, Arkansas, Florida, Georgia, Illinois, Indiana, Kansas, Kentucky, Louisiana, Mississippi, Missouri, North Carolina, Ohio, Oklahoma, South Carolina, and Tennessee. These services are provided through advanced Lucent, Nortel, Sonus, and Cisco technology. NuVox’s VoIP product, VoxIP, is delivered via technology from Cisco, Sonus, Sylantro, IP Unity, and Acme Packet. The board of directors of NuVox includes representatives from Kohlberg Kravis Roberts & Company (KKR), Goldman Sachs, JP Morgan Partners, Quadrangle Group, LLC, Whitney & Company, Wachovia Capital Partners, M/C Venture Partners, and Columbia Capital. For more information, visit http://www.nuvox.com.