Cogent Communications Holdings, Inc. (NASDAQ: CCOI) said that Cogent Communications Group, Inc. 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 notes will be offered and sold only to qualified institutional buyers, and will be guaranteed by Cogent´s domestic subsidiaries.
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 is a multinational, Tier 1 facilities-based ISP. Cogent specializes in providing businesses with high speed Internet access, Ethernet transport, and colocation services.