Washington, DC-based Cogent Communications Holdings, Inc. (NASDAQ: CCOI) has announced that its wholly owned subsidiary, Cogent Communications Group, Inc. (Cogent), intends to commence a tack-on offering of an additional USD125 million aggregate principal amount of its 5.375% senior secured notes due 2022, the company said.
The notes will be be offered and sold only to qualified institutional buyers, and will be guaranteed by Cogent´s domestic subsidiaries, subject to certain exceptions, and by Cogent Communications.
If the offering is consummated, Cogent expects to use the proceeds from the offering to pay a USD56.6 million cash dividend to Cogent Communications and for general corporate purposes, and/or to repurchase Cogent Communications´ common stock or to pay additional dividends to Cogent Communications´ stockholders.
Cogent Communications (NASDAQ: CCOI) is a multinational, Tier 1 facilities-based ISP. Cogent specializes in providing businesses with high speed internet access, ethernet transport, and colocation services. The company´s facilities-based, all-optical IP network backbone provides services in over 190 markets globally.