Shenandoah Telecommunications Announces Successful Refinancing
Shenandoah Telecommunications Company, affectionately known as Shentel, has taken a significant step in strengthening its financial position. The company officially announced the refinancing of its credit facilities, a move expected to help lower its debt cost and bolster its financial flexibility.
Highlights from the Recent Refinancing
On December 5, 2025, Shentel finalized a noteworthy refinancing of its existing credit line, aiming to enhance its capital structure. Here are some key details of the refinancing:
New Secured Fiber Network Revenue Term Notes
Shentel has successfully closed its inaugural offering of secured fiber network revenue term notes amounting to $567.4 million. This offering involves two classes of notes: $489.1 million in Class A-2 notes with a 5.64% interest rate, and $78.3 million in Class B notes with a 6.03% interest rate, both maturing in December 2030. This innovative funding is secured against the company's extensive fiber network assets.
Variable Funding and Revolving Credit Facilities
Additionally, a variable funding note facility amounting to $175.0 million is established, which is set to mature in December 2029. These advances are dependent on leverage and debt service ratios as dictated by the financing agreement. The interest rate for this facility is tied to the Secured Overnight Financing Rate (SOFR), plus a margin of 1.75%. Notably, at the closing stage, Shentel had not utilized any funds from this facility.
Simultaneously, Shentel’s subsidiary, Shentel Broadband Operations, secured a $175.0 million revolving credit facility, also maturing in December 2030. This facility is structured to provide operational flexibility while supporting future expansions and general corporate activities.
Benefits of the Refinancing
With this refinancing strategy, Shentel's President and CEO, Ed McKay, expressed confidence in the long-term benefits. The adjustments are projected to reduce the company’s cost of debt by approximately 170 basis points, which translates to an expected annual savings of about $10 million. These funds will play a pivotal role in furthering Shentel's Glo Fiber expansion.
About Shentel
Shenandoah Telecommunications Company offers an extensive range of broadband services, leveraging its sophisticated fiber optic and cable networks to serve both residential and commercial clients. The company provides services such as high-speed internet, video, voice communications, and managed network services across many eastern U.S. states. With a robust infrastructure exceeding 18,000 route miles of fiber, Shentel continues to expand its footprint and enhance service delivery.
Frequently Asked Questions
What is the purpose of Shentel's refinancing?
The refinancing aims to lower the company’s cost of debt and improve financial flexibility, particularly as Shentel expands its Glo Fiber service.
How much did Shentel raise through the refinancing?
Shentel raised approximately $567.4 million through secured fiber network revenue term notes and an additional $350 million in variable funding note and revolving credit facilities.
When do the new financial facilities mature?
The new financial facilities have various maturities, with the secured term notes maturing in December 2030 and the variable funding notes maturing in December 2029.
What are the interest rates associated with the new notes?
The Class A-2 notes carry a 5.64% interest rate, while the Class B notes have a 6.03% rate, both secured against the company’s fiber network assets.
Who can I contact for more information about Shentel?
For inquiries, you may reach Lucas Binder, VP Corporate Finance at Shenandoah Telecommunications Company, at 540-984-4800 or via email at lucas.binder@emp.shentel.com.
