Birch Communications Receives $90M in Debt Financing

Birch Communications, an Atlanta, Ga.-based IP-based telecommunications and managed services provider to small- and medium-sized businesses, has completed a $90m refinancing of its Senior and Subordinated Credit Facilities.

The new facility consists of:
– a $40m senior term loan,
– a senior revolving credit facility with a $35m capacity, and
– a $15m tranche of subordinated debt.
Additionally, the Senior Credit Facility contains an “accordion” feature which gives Birch the option to increase it by $20m.

Bank of America Merrill Lynch led the senior (term and revolver) and accordion components of the financing along with PNC Bank , National Association, a member of The PNC Financial Services Group, Inc.
The subordinated debt was provided by Kayne Anderson Mezzanine Partners, LP.

The company intends to use this financing to repay outstanding indebtedness, fund future acquisitions, and fund continued network expansion.

Led by Vincent M. Oddo, president and CEO, and Edward James, Senior Vice President and CFO, Birch Communications provides small and medium-sized businesses with managed communications and information technology services. It operates in select metropolitan areas within 38 states across the United States. Services include local and long distance voice, broadband Internet access, T1, PRI, bonded T1, mobile voice and data, e-mail, voice mail, prepaid, and many other communications and information technology services.



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