1. Shentel refinanced $585.4 million in existing credit facilities. 2. Cost of debt reduced by 170 basis points, saving $10 million annually. 3. New credit facilities extend maturity to 2030, providing financial flexibility. 4. Successful offering includes $567.4 million in secured fiber network revenue notes. 5. CEO emphasizes expansion plans for Glo Fiber in 2026.
FAQ
Why Bullish?
Reducing debt costs enhances profitability and investor confidence; historical debt reductions correlate with stock price increases.
How important is it?
Refinancing details and cost reductions significantly affect operational viability and market perception.
Why Long Term?
The refinancing impacts Shentel's cost structure, important for sustainable growth over years.
Shenandoah Telecommunications Completes Refinancing of Credit Facilities
EDINBURG, Va., Dec. 08, 2025 (GLOBE NEWSWIRE) – Shenandoah Telecommunications Company (“Shentel” or “Company”) (NASDAQ: SHEN) has recently finalized the refinancing of its credit facilities, effective December 5, 2025. This strategic move is expected to significantly lower Shentel's cost of debt by approximately 170 basis points and reduce annual interest expenses by about $10 million.
Refinancing Highlights
- Closed inaugural offering of $567.4 million secured fiber network asset revenue term notes due December 2030.
- Raised $175 million through a variable funding note facility (VFN) due December 2029.
- Established a new $175 million revolving credit facility (RCF) due December 2030.
- Repaid $585.4 million in existing term and revolving credit loans, terminating the prior credit facility due July 2028.
Details of the Refinancing
Shentel Issuer LLC, a wholly-owned subsidiary of Shenandoah Telecommunications, has closed its inaugural offering of secured fiber network revenue term notes totaling $567,405,000. This offering includes:
- $489,142,000 in 5.64% Series 2025-1, Class A-2 term notes.
- $78,263,000 in 6.03% Series 2025-1, Class B term notes.
These notes, secured by fiber network assets and customer contracts in Virginia, Ohio, Pennsylvania, Indiana, and Maryland, have an anticipated repayment date in December 2030.
Alongside the notes, Shentel Issuer established a $175 million variable funding note facility (VFN) expiring in December 2029. This facility will bear interest at the Secured Overnight Financing Rate (SOFR) plus a margin of 1.75%. Notably, no borrowings were made under the VFN at the time of closing.
In a concurrent move, Shentel Broadband Operations LLC secured a $175 million revolving credit facility (RCF) due December 2030, backed by nearly all of its subsidiary assets. Borrowings under the RCF are set to incur an interest rate based on SOFR, ranging from 2.50% to 3.00%. At closing, Shentel Broadband utilized $75 million from the RCF.
CEO's Insights on the Refinancing
Ed McKay, Shentel’s President and Chief Executive Officer, commented on the refinancing, stating, “With the refinancing of our credit facilities, we have strengthened our balance sheet by extending maturities, reduced our cost of capital, and created financial flexibility as we complete our Glo Fiber expansion in 2026.” He further emphasized the expectation to decrease the company’s cost of debt leading to an annual reduction in interest expenses.
About Shenandoah Telecommunications Company
Shenandoah Telecommunications Company (Shentel) is a prominent provider of broadband services across eight states in the eastern United States. The Company offers a suite of services, including broadband internet, video, voice, high-speed Ethernet, dedicated internet access, dark fiber leasing, and managed network services, operating an extensive network with over 18,000 route miles of fiber.
For more information about Shentel, visit www.shentel.com.
Looking Ahead
Shentel remains committed to enhancing its financial position as it navigates market challenges and pursues growth opportunities. Forward-looking statements regarding the company's business strategy, prospects, and financial health indicate a proactive approach to managing risks and achieving its objectives.