NewSpring Mezzanine Capital Announces Investment in Otelco
February 18, 2016
Radnor, PA - February 18, 2016 - NewSpring Capital, a family of private equity funds providing growth and expansion capital, announced today that NewSpring Mezzanine Capital ("NewSpring"), the firm’s dedicated mezzanine fund, has made a $15 million investment in Otelco, Inc. (“Otelco”) in partnership with Cerberus Business Finance, LLC. The total borrowings will be used to refinance the Company’s existing bank-syndicated credit facility.
Otelco is a full service telecommunications provider, offering a wide array of communication services. The company’s services include local and long distance telephone, digital high-speed data lines, transport services, network access, cable television and other related services. The company’s solid foundation, rich history, and strong forward-moving commitment to enhance technology and expand services allow Otelco to be successful.
“Otelco has been a solid, stable performer with robust positioning within its respective markets,” said Steve Hobman, NewSpring General Partner. “We are thrilled to add Otelco to our growing list of successful portfolio companies.”
“NewSpring and Cerberus are knowledgeable and experienced lenders in the telecommunications sector,” said Rob Souza, President and Chief Executive Officer of Otelco. “We look forward to working with our new financing partners as we continue to drive value for our customers and shareholders.”
Otelco Inc. provides wireline telecommunications services in Alabama, Maine, Massachusetts, Missouri, New Hampshire, Vermont and West Virginia. The Company’s services include local and long distance telephone, digital high-speed data lines, transport services, network access, cable television and other related services. With more than 97,000 voice and data access lines, which are collectively referred to as access line equivalents, Otelco is among the top 25 largest local exchange carriers in the United States based on number of access lines. Otelco operates eleven incumbent telephone companies serving rural markets, or rural local exchange carriers. It also provides competitive retail and wholesale communications services and technology consulting, managed services and private/hybrid cloud hosting services through several subsidiaries. For more information, visit the Company’s website at www.OtelcoInc.com.