Windstream $1 Billion Debtor-in-Possession Financing

Davis Polk is advising the administrative agent, collateral agent and lead arranger, in connection with the $1 billion debtor-in-possession financing for Windstream Holdings, Inc. and its subsidiaries. The loan consists of a $500 million superpriority term loan and a $500 million superpriority revolving credit facility. On February 25, 2019, the borrower’s parent, Windstream Holdings, Inc., and its subsidiaries filed for chapter 11 in the U.S. Bankruptcy Court for the Southern District of New York. On February 26, 2019, the Court approved the DIP financing on an interim basis, authorizing funding of up to $400 million under the DIP facilities.

Windstream’s filing was precipitated by an adverse ruling in the Southern District of New York issued on February 15, 2019 which, among other things, led to events of default under Windstream’s funded debt documents.

Windstream is a leading provider of advanced network communications and technology solutions. Windstream provides data networking, core transport, security, unified communications and managed services to mid-market, enterprise and wholesale customers across the United States. The company also offers broadband, entertainment and security services for consumers and businesses in rural areas in 18 states. Services are delivered over multiple network platforms, including a fiber network spanning 150,000 miles nationwide.

The Davis Polk restructuring team includes partner Timothy Graulich, counsel Natasha Tsiouris and associate Erik Jerrard. The finance team includes partners Monica Holland and Kenneth J. Steinberg, counsel Benjamin Cheng and associates Andrei Takhteyev, Scott G. Johnsson and Kelsey Avery. The real estate team includes counsel Susan D. Kennedy. All members of the Davis Polk team are based in the New York office.