Integra Telecom Completes Debt Restructure

PORTLAND, Ore.--(BUSINESS WIRE)--Integra Telecom Inc., a telecommunications provider for business, has completed the full restructuring of its balance sheet pursuant to the agreement previously reached with its lenders and announced on July 22, 2009. The agreement reduces the company’s overall debt from $1.3 billion to $600 million. As a part of the restructuring, Integra added Goldman, Sachs & Co., Tennenbaum Capital Partners, and funds managed by Farallon Capital Management LLC as new major shareholders.

“We are very pleased to have come to agreement with our shareholders and lenders and to complete the full restructuring of our balance sheet”

“We are very pleased to have come to agreement with our shareholders and lenders and to complete the full restructuring of our balance sheet,” said Dudley Slater, CEO of Integra Telecom. “Our customer focused business model has allowed Integra to grow to be one of the largest and most cash profitable competitive telecom providers in the nation and this restructuring aligns our balance sheet with the realities of the current national economy. This transaction is a testament to the potential our lenders and shareholders see in Integra.”

Earlier this year Integra proactively approached its lenders to restructure its debt which led to the July 22^nd agreement. These actions were in response to the nation’s economic downturn which resulted in operating trends where new customer installations were offset by higher economic churn, causing flat revenue trends. While the company has continued to generate substantial positive free-cash-flow during the economic downturn it concluded that the restructuring would better position the Company to navigate the uncertainties of the national recession. As a result of the restructuring Integra now enjoys one of the lowest levels of debt leverage among its industry peers.

Integra Telecom was advised on its restructuring by Kirkland & Ellis LLP and FTI Capital Advisors LLC.

About Integra Telecom

Integra Telecom Inc. provides voice and Internet solutions to thousands of business and carrier customers in 11 Western states, including: Arizona, California, Colorado, Idaho, Minnesota, Montana, Nevada, North Dakota, Oregon, Utah and Washington. It owns and operates a best-in-class fiber-optic network comprised of metropolitan access networks, a nationally acclaimed tier one Internet and data networks, and a 4,700-mile high-speed long haul network. The company has earned some of the highest customer loyalty and customer satisfaction ratings in the telecommunications industry. Primary equity investors in the company include Goldman, Sachs & Co., Tennenbaum Capital Partners, funds managed by Farallon Capital Partners and Warburg Pincus. Integra Telecom and Electric Lightwave are registered trademarks of Integra Telecom Inc. For more information, visit: www.integratelecom.com.