NORWALK, Conn.--27 October 2008-- GE Commercial Finance's Media, Communications & Entertainment business today announced that it will act as Administrative Agent in an expanded $188.5 million senior credit facility to Otelco Inc. (NASDAQ: OTT; TSX: OTT.un), a wireline telephone services provider in Alabama, Maine and Missouri. GE Capital Markets, Inc. is serving as lead arranger and sole bookrunner on the new facility. CoBank, ACB is acting as co-lead arranger.
Otelco will use the expanded credit agreement to finance its acquisition of three subsidiaries of Country Road Communications LLC, announced on August 7, 2008: Pine Tree Holdings, Inc., Granby Holdings, Inc. and War Holdings, Inc.
Funding of the amended credit agreement is conditioned upon, among other things, the concurrent closing of the Country Road acquisition. The amended credit agreement will terminate on December 31, 2008 if all of the conditions to funding have not been met by that date. The existing credit agreement will remain effective until funding occurs under the amended credit agreement.
"We are very excited to have executed a definitive credit agreement thanks to GE's deep industry knowledge and the support of all our lending providers," said Mike Weaver, president and CEO of Otelco. "With this financing we are poised to complete the acquisition of the Country Road properties and further grow our company in key areas complementary to our current markets, benefitting our shareholders and the communities and customers we serve."
"Otelco is a longtime GE client and we are pleased to support the company with a larger credit facility for its expansion," said Mark Bernier, managing director, communications, GE Commercial Finance. "Using our experience in the telecom sector and capital markets expertise we were able to deliver a financing solution that helps position the company for growth in a challenging economic environment."
About GE Commercial Finance -- Media, Communications & Entertainment:
With nearly $10 billion in assets and offices in Atlanta, Chicago, Hong Kong, London, Los Angeles, Munich, New York, Norwalk (HQ), San Francisco, Singapore and Toronto, the Media, Communications & Entertainment business is a global strategic partner to these industries and the technologies that enable them. We bring GE's full resources and financial strength to each relationship, while delivering industry expertise and flexible financing solutions that maximize stakeholder value. For more information, visit www.geMCE.com
About GE Commercial Finance:
GE Commercial Finance, which offers businesses around the globe an array of financial products and services, has assets of over $300 billion and is headquartered in Norwalk, Connecticut. GE (NYSE: GE) is Imagination at Work -- a diversified technology, media and financial services company focused on solving some of the world's toughest problems. GE serves customers in more than 100 countries and employs more than 300,000 people worldwide. For more information, visit www.ge.com.
Ned Reynolds
GE Capital
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