Competitive service provider TW Telecom (NASDAQ:TWTC, news, filings) took further financial steps today in the refinancing activity they announced earlier this month. First, they have closed their sale of $430M of 8% senior notes due 2018. And second, the early results of the tender offer are in, with $366.5M being tendered and the company receiving consents from 91.6% of holders for the covenant changes. Amongst those covenant changes was a shortening of the redemption notice period to three days, which they are immediately taking advantage of and will redeem any notes on March 31, the day after the tender offer ends. Why the rush? Hmmm, I suppose we’ll have to wait and see.
TW Telecom announced an expansion of its relationship with data center and webhosting provider MaximumASP. They will be providing a dual entry fiber connection to the company’s data center in Louisville, Kentucky. TW added about 1000 enterprise buildings to its network in 2009, as they have each of the prior three years. This increases their total on-net enterprise buildings by around 10%, and they will likely add a similar number in 2010.
But what they haven’t done since the Xspedius acquisition is open any new markets – that number has been 75 for quite a while now. Their expansion has been powerful, but it has been directed almost entirely into network depth rather than breadth. The latter seems more likely to come via M&A, the RCN Metro assets being a case in point given TW Telecom’s lack of presence in New England or Pennsylvania.
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