Bloomberg News

Windstream Obtains $1.1 Billion Financing for Paetec Acquisition

August 01, 2011

Aug. 1 (Bloomberg) -- Windstream Corp., the U.S. provider of telecommunications services obtained $1.1 billion in financing to back its acquisition of Paetec Holding Corp., according to a statement distributed by Globe Newswire.

The company is also seeking to amend its credit agreement so that it can issue bridge loans, according to a separate statement.

The amendment will also allow Windstream to issue and repay escrow notes, the Little Rock, Arkansas-based company said.

Windstream agreed to buy Paetec for about $891 million to add broadband-network assets and business services. JPMorgan Chase & Co. is providing the financing, according to a person with knowledge of the deal, who declined to be identified because the terms are still private.

Windstream had $7.3 billion in outstanding long-term debt as of March 31, according to a regulatory filing.

--With assistance from Krista Giovacco in New York. Editors: Faris Khan, Mitchell Martin

To contact the reporter on this story: Richard Bravo in New York at rbravo5@bloomberg.net

To contact the editor responsible for this story: Faris Khan at fkhan33@bloomberg.net


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