Knology Inc., the West Point, Georgia-based communications-services provider, said it obtained consent from lenders to amend its credit facility.
The maturity date of an aggregate $397 million of term loans was extended by two years to June 30, 2014, according to a statement distributed by Business Wire. The interest rate on the debt will be 3.5 percentage points more than the London interbank offered rate.
The amendment also increased the revolving credit facility to $35 million from $25 million and allows for an annual, cumulative restricted payment allowance of $10 million for dividends and share repurchases utilizing excess cash flow and subject to a maximum-leverage test, according to the statement.
“The current credit and interest-rate environment allows us to better manage our balance sheet on a longer-term basis, while at the same time improve the already healthy free-cash- flow profile of the business in the years to come,” said M. Todd Holt, chief financial officer, in the statement.
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