Facilities-based CLEC Integra Telecom announced that it has reached an agreement with its three primary lenders to restructure its balance sheet. Under the terms of the agreement, Integra's senior secured second lien operating company debt and unsecured parent company debt will be converted into common equity. By conducting this transaction, Integra says it will be able to reduce its debt from almost $1.3 billion to about $600 million. At the completion of this process, Goldman Sachs, Tennenbaum Capital Partners, and Farallon Capital Management LLC will become new Integra Telecom shareholders.
After meeting necessary state and regulatory approvals, Integra says the process will be completed by the end of 2009. In addition, Integra will conduct a full vote solicitation of smaller holders of its debt, which Integra expects will support this latest move.
- here's the official release
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