Birch Communications secures $110M in refinancing effort

Birch Communications has a new $110 million cash infusion as it has completed its refinancing of its Senior and Subordinated Credit Facilities.

Included in this $90 million facility is a $40 million senior term loan, a senior revolving credit facility with a $35 million capacity, and a $15 million tranche of subordinated debt. One of the features of the senior credit facility is an "accordion" element which will enables Birch to increase the senior credit facility by $20 million.

Joining Bank of America Merill Lynch, which led the senior and accordion components of the financing, was PNC Bank, National Association. Kayne Anderson Mezzanine provided the subordinated debt, with North Sea Partners LLC as the advisor to Birch for the subordinated debt.

Last month, Birch secured a $7.5 million equipment financing deal with CIT Vendor Finance.

It will use the funds for various purposes, including new acquisitions, growing its proprietary IP network, and paying down existing debt.

Vincent Oddo, Birch's president and chief executive officer, said "this funding will allow us to continue to seek accretive acquisitions, expand our proprietary IP-network, and also allow us to expand the scope of our current products and services to better serve our large existing base of customers."

Growth and new product development such as the recently launched wholesale business has been one of Birch's main themes throughout 2011 and into 2012. The service provider reported in its most recent quarter that ended on June 30 organic sales were up 18 percent over the same quarter in 2011.

For more:
- see the release

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