After discontinuing its efforts back in March, Earthlink (NASDAQ:ELNK, news, filings) appears to have finally landed the refinancing it was looking for. This morning they kicked off the private offering of $300M in senior secured notes due 2020. And simultaneously they commenced a tender offer and consent solicitation for the $292.3M in 10.5% notes due 2016 that they inherited from the purchase of Deltacom two years ago. No doubt we will hear what the new pricing will be later today or tomorrow.
Getting that out of the way will further clear the decks for Earthlink’s ongoing transformation of its CLEC and ISP assets into a cloud-based managed IT services platform. Of course, the uncertainty involved in that process likely made it a bit harder to get the price they wanted. But in the company’s recent earnings call they reiterated their view that there was savings to be had in the Deltacom bonds.
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