Thursday, September 11, 2008

Atlantic Tele-Network takes on $150M credit facility

By Mass High Tech Staff

North Shore telecommunications company Atlantic Tele-Network Inc. has entered into a new $150 million secured credit facility, consisting of a $75 million term loan and a $75 million revolving loan. CoBank ACB of Colorado acted as lead in the deal, which replaces the company’s existing credit facility, officials report.

Atlantic Tele-Network, based in Salem, used approximately $50 million of the new term loan — which runs for seven years — to repay outstanding debt under the company’s previous credit arrangement, which has been terminated, according to officials. The company says it will use the remaining proceeds for working capital expenses, capital expenditures, acquisitions and other general corporate purposes.

The revolving loan is slightly shorter in length than the term loan, with a duration of six years. The credit facility also provides Atlantic Tele-Network (Nasdaq: ATNI) the option to enter into an additional term loan of up to $50 million.

Atlantic Tele-Network is a telecommunications company, which moved its corporate offices in February of 2006 to Salem from St. Thomas, U.S. Virgin Islands, in February. Its principal subsidiaries include Guyana Telephone and Telegraph Co. Ltd., Commnet Wireless LLC, SoVerNet Inc. of Vermont; and Choice Communications LLC, which provides wireless television and wireless broadband services, as well as dial-up internet services in the U.S. Virgin Islands.

In July of 2006 Atlantic Tele-Network raised $42.4 million in a private placement. With 784 employees as of June, Atlantic Tele-Network reported a profit for 2007 of $37.9 million on revenue of $186.7 million.