Cogent Communications Holdings, Inc. (NASDAQ: CCOI) has announced the launch of a notes offering, with its wholly owned subsidiaries, Cogent Communications Group, LLC and Cogent Finance, Inc., intending to commence an offering of $300.0 million aggregate principal amount of 7.000% senior notes due 2027. The company plans to use approximately $110 million of the net proceeds from the offering to prepay in full an existing indefeasible right-of-use agreement with an aggregate principal amount of approximately $125 million of monthly recurring payments remaining, held by a subsidiary of Cogent Infrastructure LLC, at a 12% discounted rate. The remainder of the net proceeds will be used for general corporate purposes and/or to make special or recurring dividends to the company.
The notes will have the same maturity date and call protection, bear interest at the same rate and otherwise have substantially the same terms as the issuers’ existing 7.00% senior notes due 2027 (the “existing unsecured notes”); however, the notes will not be fungible with the existing unsecured notes and will be a separate series of notes.
Cogent Communications Holdings, Inc. is a facilities-based provider of low-cost, high-speed internet access, private network services, internet protocol version 4 address leasing, optical transport services, and data center colocation to bandwidth-intensive businesses. Cogent's facilities-based, all-optical IP network provides services in hundreds of major metropolitan markets across 53 countries. The market has reacted to these announcements by moving the company's shares -0.6% to a price of $56.45. Check out the company's full 8-K submission here.
