Hawaiian Telcom saves $6M by refinancing debt

Hawaiian Telcom (Nasdaq: HCOM) has closed the refinancing of its debt, a move that it says will save it $6 million in annual interest costs.

At the same time, the service provider also secured a $300 million term loan in connection with the refinancing.

Earlier this month, Hawaiian Telcom announced it was going to refinance its existing credit facility.

Combined with $16 million of existing cash, Hawaiian Telcom will use the proceeds of the $300 million term loan to pay off its outstanding term loan and pay accrued interest and premium amounts, in addition to closing costs and other expenses.

Eric K. Yeaman, Hawaiian Telcom's president and CEO, said this move "significantly lowers our cost of debt and provides us with improved covenant flexibility."

"The new financing allows HCOM to pay a dividend on its equity," while "the previous debt facility precluded equity dividends," said David Tawil, cofounder and portfolio manager at Maglan Capital, a New York-based debt investment fund.

For more:
- see the release

Related articles:
Hawaiian Telcom added to Wilshire 5000 Total Market Index
At Hawaiian Telcom, EoC creates sticky business customers
Stepping to the EoC plate: Incumbent telcos take a swing
Hawaiian Telcom refinances its existing credit facility
Hawaiian Telcom employs Calix for its broadband expansion drive

Suggested Articles

“We’ve seen decades of momentum in weeks," said Gelsinger. "We’re surprised how quickly customers were able to adapt."

Along the same lines as AT&T last week, Comcast Business has released a more robust, in-home broadband service for work from home employees.

After posting a triple-digit revenue increase last year, the growth outlook for carrier managed SD-WAN has been lowered by 17%, according to a report.