FairPoint Communications 2006 Annual Report Download - page 73

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

proceeds of $462.5 million from the offering together with borrowings of $566.0 million under the term facility of the credit facility as follows:
· $176.7 million to repay in full all outstanding loans under the Company’s old credit facility (including accrued interest);
· $122.1 million to repurchase $115.0 million aggregate principal amount of the Company’s 9 2% senior subordinated notes due 2008, or the 9 2%
notes, pursuant to the tender offer and consent solicitation for such notes (including accrued interest, tender premiums and consent payments);
· $51.8 million to repurchase $50.8 million aggregate principal amount of the Company’s floating rate callable securities due 2008, or the floating rate
notes, pursuant to the tender offer and consent solicitation for such notes (including accrued interest, tender premiums and consent payments);
· $193.4 million to repurchase $173.1 million aggregate principal amount of the Company’s 12 2% senior subordinated notes due 2010, or the 12 2%
notes, pursuant to the tender offer and consent solicitation for such notes (including accrued interest, tender premiums and consent payments);
· $274.9 million to repurchase $223.0 million aggregate principal amount of the Company’s 11 8% senior notes due 2010, or the 11 8% notes,
pursuant to the tender offer and consent solicitation for such notes (including accrued interest, tender premiums and consent payments);
· $129.2 million to repurchase all of the Company’s series A preferred stock subject to mandatory redemption, or the series A preferred stock, from the
holders thereof (together with accrued and unpaid dividends thereon);
· $10.6 million to repay a substantial portion of the Company’s subsidiaries’ outstanding long-term debt (including accrued interest);
· $7.0 million to repay in full a promissory note issued by the Company in connection with a past acquisition;
· $18.4 million to invest in temporary investments pending the redemption of the 9 2% notes and the floating rate notes not tendered in the tender offers
for such notes; and
· $44.4 million to pay fees and expenses, including underwriting discounts of $27.8 million, $8.2 million of debt issuance costs associated with the
credit facility and a transaction fee of approximately $8.4 million paid to Kelso & Company, one of the Company’s investors.
On March 10, 2005, the Company used $18.4 million which it had invested in temporary investments, together with $6.6 million of cash on hand, to
redeem the $0.2 million aggregate principal amount of the 9 2% notes (including accrued interest and redemption premiums) that were not tendered in the
tender offer for such notes and the $24.2 million aggregate principal amount of the floating rate notes (including accrued interest) that were not tendered in the
tender offer for such notes.
On May 2, 2005, the Company used $22.4 million of borrowings under the delayed draw facility of the credit facility to redeem the $19.9 million
aggregate principal amount of the 12 2% notes (including accrued interest and redemption premiums) that were not tendered in the tender offer for such notes.
In connection with such redemption, a premium of $1.2 million was recorded and an additional $0.4 million of existing debt issuance costs has been
subsequently charged off, resulting in the recognition of a loss of $1.6 million for retirement of debt in 2005.
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