Article: Eschelon Telecom plans $100 million debt offering.(BUSINESS)

Byline: Steve Alexander; Staff Writer

Business telephone firm Eschelon Telecom of Minneapolis said it plans to pay off its bank loans with a new debt offering, a financing move that will free the local telephone service provider to pursue acquisitions.

Eschelon, which serves small and medium-sized businesses in seven states, has priced $100 million worth of 8 3/8 percent senior second secured notes due in 2010 at a discount, resulting in a 12 percent yield.

Privately held Eschelon, which has 888 employees, including 500 in the Twin Cities, is unprofitable on annual revenue of $140 million but became cash-flow positive in the fourth quarter of ...

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