CNSL - Consolidated Comms +2.4% after taking stage one investment from Searchlight refinancing debt

Consolidated Communications (CNSL) has closed on stage one of Searchlight Capital Partners' investment - a $350M outlay - and has completed its debt refinancing. Shares are up 2.4%. Searchlight affiliates have committed to invest $425M in Consolidated, with the first $350M coming today in exchange for 8% of the company's common stock. Searchlight has also received a contingent payment right convertible into an additional 16.9% in stock, and the right to receive an unsecured subordinated note of about $395.5M. The second stage will mean investment of another $75M and Searchlight receiving the note. Following the second stage, and with shareholder approval, the CPR will be convertible into an additional 10.1% of common stock. After both stages, that sums to about 35% of Consolidated's common stock. The company's new all-secured capital structure includes $2.25B of funded debt at attractive rates, including a $250M revolving credit facility, it says. It's reduced net

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Consolidated Comms +2.4% after taking stage one investment from Searchlight, refinancing debt