NTELOS establishes $370M post-separation fund for Lumos Networks

As NTELOS (Nasdaq: NTLS) prepares to spin off its wireline division as a separate company, which will be called Lumos Networks, it has entered into a $370 million post-separation credit facility for the new company.  

When Lumos becomes a separate company, which is expected later this year, it will be listed as LMOS on the Nasdaq stock exchange.

Included in the credit facility will be a $60 million senior secured five-year revolving credit facility, $30 million of which is expected to be drawn upon funding; a $110 million senior secured five-year amortizing term loan A; and a $200 million senior secured six-year amortizing term loan B.

Proceeds of the credit facility will be made available to Lumos Networks on the date of separation to fund a working capital cash reserve at Lumos Networks for its own operations and to pay approximately $315 million to NTELOS to pay off intercompany debt. The proceeds will also be used to fund a $283 million mandatory repayment on NTELOS Inc.'s credit facility.

Serving as joint lead arrangers and joint bookrunners for the credit facility are CoBank, ACB and SunTrust Robinson Humphrey, Inc.

Putting this credit facility together marks one of the last steps NTELOS is taking to separate its wireless and wireline holdings into two separate businesses.

For more:
- see the release

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