PAETEC Holding Corp. this week closed a previously announced senior secured notes offering in a bid to enhance its financial flexibility to invest in its network, customer support and the expansion of its product suite.

 

The company issued senior secured notes in the amount of $350 million in a private offering to institutional investors with a fixed interest rate of 8 7/8 percent that are set to mature in 2017.

Arunas A. Chesonis, chairman and chief executive officer of PAETEC, said the offering was well-received by the debt market, which enabled the Fairport, N.Y.-based outfit – which delivers its solutions to business-class customers – outfit  to complete the offering within a short timeframe.

 

By extending its debt maturities, the company expects to enhance financial flexibility. “Over our 11 years, our conservative fiscal management has allowed PAETEC (News - Alert) to thrive in times where others have not," said Chesonis.

 

The Fairport, N.Y.-based company delivers its solutions to business-class customers,

 

In addition, the company has used the net proceeds from the offering to repay a portion of the loans outstanding under PAETEC's existing senior secured term loan credit facility, according to Keith Wilson, chief financial officer.

 

"PAETEC's history of disciplined financial management has enabled the company to access the capital markets opportunistically," said Wilson.

 

Additional information about the senior secured notes offering will be contained in the company's current report on Form 8-K, to be filed with the Securities and Exchange Commission.

 

"The continued support from the financial community is a solid validation of our long term strategy and being a competitive communications market leader," said Wilson.