WASHINGTON, June 2, 2025 /PRNewswire/ — Cogent Communications Holdings, Inc. (NASDAQ: CCOI) is making a strategic move to bolster its financial footing, announcing today its intention to launch a $600.0 million senior secured notes offering due in 2032. These notes, earmarked for qualified institutional buyers and certain non-U.S. entities, will be issued by two of its subsidiaries: Cogent Communications Group, LLC and Cogent Finance, Inc. The notes will be backed by guarantees from Cogent Group’s domestic subsidiaries and the parent company itself, although the parent company will not be subject to the covenants governing the notes.
A significant portion of the proceeds from this offering will be used to refinance the Issuers’ outstanding $500.0 million in 3.500% senior secured notes due in 2026. The remaining funds will provide Cogent with greater operational flexibility, earmarked for general corporate needs potentially including recurring dividends to shareholders.
While the offering signals financial confidence, investors should note that the issuance and sale of these notes, as well as the subsequent redemption of existing debt, are not guaranteed. The company cautions that this announcement is not an offer to sell or a solicitation of an offer to buy any securities. The notes will not be registered under the Securities Act or other jurisdictions’ securities laws, meaning they are subject to specific trading limitations.
About Cogent Communications
Cogent (NASDAQ: CCOI) is a major player in the bandwidth-intensive business services sector. The company provides low-cost, high-speed internet access alongside private network services, operating a significant all-optical IP network that spans across 292 markets globally.
Headquartered in Washington, D.C., Cogent continues to be a key provider in the evolving digital landscape.
This press release contains forward-looking statements. These statements, which do not include the impact of any mergers, acquisitions, divestitures, or business combinations, are based on current expectations and assumptions. They are subject to risks and uncertainties that could cause actual results to differ materially. These include issues related to the offering or the redemption of the Existing Secured Notes, including that such transactions may not occur; difficulties integrating the Company’s business with the acquired Sprint Business; the impact of changing foreign exchange rates (in particular the Euro to U.S. dollar and Canadian dollar to U.S. dollar exchange rates); government policy and/or regulation; and competition. The company is not obligated to update these forward-looking statements.
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SOURCE Cogent Communications Holdings, Inc.
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