NEW YORK — Windstream Corp., the Little Rock-based telecommunications-services provider with $8.7 billion of debt, is seeking as much as $900 million of term loans under its current credit agreement.
The company is asking for lender consent to change and restate its existing facilities to add the new debt, it said today in a statement.
Proceeds from the loan would be used to repay Windstream’s revolving line of credit and for general corporate purposes, the company said. The revolver totaled $680 million as of March 31, according information on the company’s website. Windstream expects to complete the transaction in August.
The company also had $446 million of term loan due in 2013 and 2016, and $1.33 billion of B portion loans due in 2013 and 2015 as of March 31, Windstream said on its website.
David Avery, a spokesman for Windstream, didn’t immediately respond to an e-mail seeking comment.
A term loan B is sold mainly to nonbank lenders such as collateralized loan obligations, bank loan mutual funds and hedge funds. A term loan A is sold mainly to banks. In a revolving credit facility, money can be borrowed again once it’s repaid; in a term loan, it can’t.