Alaska Communications Systems Announces Closing of New $470 Million Senior Credit Facility

Alaska Communications Systems Group, Inc. ALSK today announced the closing of the refinancing of its existing first lien term loan. In connection with the refinancing, ACS entered into a new $440 million first lien term loan maturing October 21, 2016, together with a $30 million revolving credit facility maturing October 21, 2015. ACS used proceeds of the new term loan to pay off its outstanding $426 million term loan and to pay closing costs and other expenses related to the transaction, with the remaining proceeds of approximately $2 million plus cash on hand available for unwinding its existing out-of-the-money interest rate swap agreements. Pricing on the new term loan was set at LIBOR plus 4.0 percent with a LIBOR minimum of 1.5 percent, and sold at $99 per $100 of principal amount.