Windstream Corp. of Little Rock announced Monday that it is refinancing its senior notes at a higher interest rate.
In a news release, the company announced it will offer $500 million in senior unsecured notes at an interest rate of 7.75 percent per year.
The notes will mature in 2021 and the offer is expected to be completed before the end of August.
Windstream stated it will use the proceeds from the offer to buy back senior notes due 2019, which had a 7 percent interest rate.
The move essentially pushes back payment on the notes by two years at the cost of a higher interest rate.
The company is paying $25 per $1,000 of the 2019 notes’ principle amount.
“To the extent that holders of less than $500 million in aggregate principle amount of the 2019 notes tender their notes, Windstream intends to use the remaining net proceeds of the notes offering, together with available cash, if required, to redeem all of the remaining outstanding 2019 notes,” the news release said.
Last week, Windstream reported second-quarter earnings of $40 million, down 21 percent from the same time last year.
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