GENERAL COMMUNICATION, INC. (NASDAQ:GNCMA) Files An 8-K Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a RegistrantItem 2.03 – Creation of a Direct Financial Obligation or an Obligation Under an Off-Balance Sheet Arrangement of a Registrant
On August 14, 2017, GCI, Inc. (“Parent”), a wholly owned subsidiary of General Communication, Inc., and GCI Holdings, Inc. (“Borrower”), a wholly owned subsidiary of the Parent, entered into a Sixth Amendment to the Fourth Amended and Restated Credit and Guarantee Agreement dated as of February 2, 2015 among the Borrower, the Parent, the subsidiary guarantors party thereto, the lenders party thereto, Credit Agricole Corporate and Investment Bank, as administrative agent, MUFG Union Bank, N.A. and SunTrust Bank, as co-syndication agents, and Bank of America, N.A., as documentation agent (“Credit Agreement”). The amendment refinanced the $245.813 million Term Loan B with a new Term Loan B with the same principal amount and maturity date (the “Refinanced Term Loan B”). The Refinanced Term Loan B bears interest at either the alternate base rate or LIBOR (based on an interest period selected by the Borrower of one month, two months, three months or six months) at the Borrower’s election in each case plus a margin. Refinanced Term Loan B borrowings that are alternate base rate loans bear interest at a per annum rate equal to the alternate base rate plus a margin of 1.25% (a 0.75% decrease). Term Loan B borrowings that are LIBOR loans bear interest at a per annum rate equal to the applicable LIBOR plus a margin of 2.25% (a 0.75% decrease).
The Credit Agreement also includes a $215 million Term Loan A and a $200 million revolving credit facility, with a $50 million sub-limit for standby letters of credit, which were not refinanced.
The Credit Agreement contain certain affirmative and negative covenants that were not amended, including certain restrictions on the Parent, the Borrower and their subsidiaries with respect to, among other things: incurring additional indebtedness; creating liens on property or assets; making certain loans or investments; selling or disposing of assets or equity of subsidiaries; paying certain dividends and other restricted payments; dissolving, consolidating or merging; entering into certain transactions with affiliates; entering into sale or leaseback transactions; restricting subsidiary distributions; acquiring businesses; prepaying certain indebtedness; amending certain material agreements; entering into hedging arrangements; and restricting the Parent’s interest coverage ratio, total leverage ratio and senior leverage ratio.
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4.1 |
Sixth Amendment to the Fourth Amended and Restated Credit Agreement dated as of August 14, 2017 |
GENERAL COMMUNICATION INC ExhibitEX-4.1 2 exhibit4-1sixthamendment.htm EXHIBIT 4.1 Exhibit Exhibit 4.1Execution VersionSIXTH AMENDMENT dated as of August 14,…To view the full exhibit click here
About GENERAL COMMUNICATION, INC. (NASDAQ:GNCMA)
General Communication, Inc. is a holding company. The Company, together with its subsidiaries, is a diversified communications provider with operations primarily in the State of Alaska. The Company provides a range of wireless, data, video, voice, and managed services to residential customers, businesses, governmental entities, and educational and medical institutions primarily in Alaska under its GCI brand. The Company operates in two segments: Wireless and Wireline. The Company’s Wireless segment provides wholesale wireless services to wireless carriers. The Company’s Wireline segment offers services and products under three major customer groups, such as consumer, business services and managed broadband. Its fiber network employs digital transmission technology over its fiber optic facilities, which include digital undersea fiber optic cable systems linking its Alaska terrestrial networks to the networks of other carriers.
