Windstream Seeks to Amend Its Credit Agreement and Security Agreement

Windstream Corp. WIN previously announced today that it was acquiring PAETEC Holding Corp. In connection with this acquisition, Windstream is seeking to amend its senior secured credit agreement by, among other things, (i) permitting the issuance of bridge loans, (ii) permitting the issuance and repayment of escrow notes, (iii) waiving guaranty and security requirements with regard to PAETEC and its subsidiaries, (iv) deleting the capital expenditures covenant and (v) waiving any breach due to the change of control provisions under PAETEC's outstanding notes. In addition, Windstream is seeking to amend its security agreement by, among other things, waiving the obligation to grant security on accounts relating to escrow notes and the proceeds of notes held in such accounts. Following consummation of Windstream's acquisition of PAETEC (and subject to the receipt of the amendment to the senior secured credit agreement), Windstream intends to guarantee PAETEC's outstanding 9.5% senior notes due 2015, 8 7/8% senior secured notes due 2017, and 9 7/8% senior notes due 2018.