tw telecom has decided to refinance its debt by selling $30 million worth of senior notes. The Denver-based CLEC plans to pay off debt that's due in 2014 with a 9.25 percent interest rate. Set to close on March 17, the new offering includes an eight percent interest rate and matures in 2018.
It appears that 2010 is becoming the right time for CLECs and ILECs to refinance their debt as the capital market freeze appears to be showing signs of thawing out. Last December, Birch Telecom moved to raise $100 million, while wholesale provider Level 3 plans to raise $640 million and Qwest is going to purchase $1.2 billion in debt.
But not everyone is jumping on this bandwagon. Huntsville, Ala.-based CLEC Deltacom decided against conducting a debt offering because it believes capital costs are too high.
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