Shenandoah Telecommunications Completes Refinancing of Credit Facilities

Shenandoah Telecommunications (NASDAQ:SHEN) completed a refinancing effective December 5, 2025 that extends debt maturities and lowers borrowing costs.

Rhea-AI Summary

Shenandoah Telecommunications (NASDAQ:SHEN) completed a refinancing effective December 5, 2025 that extends debt maturities and lowers borrowing costs.

Key terms: inaugural secured fiber network revenue term notes of $567.405M due Dec 2030 (5.64% Class A-2; 6.03% Class B), a $175M VFN due Dec 2029 at term SOFR+1.75% (no borrowings at close), and a $175M revolving credit facility due Dec 2030 (SOFR+2.50%–3.00%) with $75M drawn at closing. The company expects ~170 bps lower cost of debt and ~$10.0M annual interest expense savings; upfront transaction fees were ~$15.0M.

Positive

• Cost of debt expected to fall by approximately 170 basis points
• Estimated interest expense savings of approximately $10.0 million annually
• Extended debt maturities to Dec 2030 for term notes and RCF
• Closed inaugural secured fiber revenue notes totaling $567.405 million

Negative

• Upfront transaction fees of approximately $15.0 million
• Repaid $585.4 million of prior term and revolving loans at closing
• VFN advances subject to pro-forma leverage and debt service coverage covenants

Argus Dec 8 session

-0.44% close to close Open Argus

Details

News Market Reaction – SHEN

On Dec 8, the day this news came out, SHEN closed 0.44% below the previous close.

Data tracked by StockTitan Argus for the Dec 8 session.

Market Context

This announcement details a completed refinancing that replaces prior facilities with new term notes...

Analysis

This announcement details a completed refinancing that replaces prior facilities with new term notes and revolving credit, extending maturities to 2030 and targeting a 170‑basis‑point reduction in borrowing cost and about $10.0 million in annual interest savings. It follows the earlier pricing of $567.4 million in secured fiber notes reported on recent 8‑K filings. Investors may track how these changes affect future interest expense, leverage, and progress on the Glo Fiber expansion through 2026, alongside ongoing capital spending and operating performance.

Key Figures

Cost of debt reduction: 170 basis points Interest expense savings: $10.0 million annually Secured term notes: $567.4 million +5 more

Cost of debt reduction

170 basis points

Expected reduction in cost of debt from refinancing

Interest expense savings

$10.0 million annually

Expected annual interest expense reduction from refinancing

Secured term notes

$567.4 million

Secured fiber network asset revenue term notes due December 2030

Variable Funding Note facility

$175.0 million

VFN facility due December 2029 secured by fiber assets

Revolving Credit Facility

$175.0 million

New RCF due December 2030 entered by Shentel Broadband

Repaid loans

$585.4 million

Term and revolving credit loans repaid and facility terminated

Transaction fees

$15.0 million

Upfront fees incurred to complete Notes and VFN financings

VFN interest margin

1.75% over term SOFR

Interest rate margin on Variable Funding Note facility

Historical Context

5 past events · Latest: Dec 04

5 events

1. Dec 04

   Fiber launch

   24h Move

   +0.4%

   Radford, VA fiber-to-the-home deployment with multi-gig speeds and no-cost upgrades.

2. Dec 01

   Conference participation

   24h Move

   +0.4%

   CEO attending New York fiber panels at Raymond James and UBS conferences.

3. Nov 20

   Debt offering pricing

   24h Move

   +1.1%

   Pricing of $567.4M secured fiber asset securitization with December 2030 repayment date.

4. Nov 17

   Debt offering launch

   24h Move

   -4.3%

   Launch of inaugural $567.4M secured fiber network revenue term notes offering.

5. Nov 13

   Fiber launch

   24h Move

   -3.5%

   Glo Fiber rollout in Greenfield, Ohio passing 2,300+ locations with 5 Gbps speeds.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

basis points, term notes, variable funding note facility, revolving credit facility, +2 more

6 terms

basis points financial

"lower cost of debt by approximately 170 basis points1, or $10.0 million"

Basis points are a way to measure small changes in interest rates or percentages, where one basis point equals 0.01%. For example, if a loan's interest rate increases by 50 basis points, it's gone up by 0.50%. They help people understand tiny differences in rates that can add up over time, making financial comparisons clearer.

term notes financial

"Secured Fiber Network Asset Revenue Term Notes due December 2030"

Term notes are written promises by a borrower to repay borrowed money with interest over a fixed period, like lending someone cash with a scheduled payback date and regular interest. For investors they act like short- to medium-term loans that pay predictable income but carry credit and liquidity risk; they matter because they affect a company’s borrowing costs and balance between debt and equity, and their terms determine how quickly investors get paid back.

variable funding note facility financial

"Raised $175.0 million Variable Funding Note Facility due December 2029"

A variable funding note facility is a revolving short-term borrowing arrangement that lets a company issue and repay short-term promissory notes on demand, often supported by a committed lender or a pool of liquid assets. For investors, it is like the company’s credit card: it smooths cash flow and funds operations or maturing debt but creates rollover and liquidity risk if market access or the backstop disappears, and costs can rise quickly when credit conditions tighten.

revolving credit facility financial

"Raised $175.0 million new Revolving Credit Facility due December 2030"

A revolving credit facility is a type of loan that a business can borrow from whenever it needs money, up to a set limit. It’s like having a credit card for companies—allowing them to borrow, pay back, and borrow again as needed, providing flexibility for managing cash flow or funding short-term expenses.

secured overnight financing rate financial

"The VFN will bear interest at term Secured Overnight Financing Rate"

A secured overnight financing rate (SOFR) is a daily benchmark interest rate that reflects the cost of borrowing cash overnight using U.S. Treasury securities as collateral. Think of it as the market price to “rent” cash for a day with a very safe pledge, similar to paying a short-term rental fee for money backed by government bonds. Investors track SOFR because it underpins pricing for loans, bonds and derivatives, so movements change borrowing costs, interest income and the valuation of interest-rate–linked positions.

indenture regulatory

"As part of the same Indenture and fiber network assets and related"

An indenture is a legal agreement between a company that borrows money by issuing bonds and the people who buy those bonds. It explains the rules the company must follow, like paying back the money and keeping certain financial promises. This document helps both sides understand their rights and responsibilities.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Expects to lower cost of debt by approximately 170 basis points¹, or $10.0 million annually²
Extends maturities to 2030

EDINBURG, Va., Dec. 08, 2025 (GLOBE NEWSWIRE) -- Shenandoah Telecommunications Company (“Shentel” or “Company”) (NASDAQ:SHEN) announced the refinancing of its existing credit facilities effective December 5, 2025 (“Closing”).

Refinancing Highlights

• Closed Inaugural $567.4 million Secured Fiber Network Asset Revenue Term Notes due December 2030
• Raised $175.0 million Variable Funding Note Facility due December 2029
• Raised $175.0 million new Revolving Credit Facility due December 2030
• Repaid $585.4 million Term and Revolving Credit Loans and Terminated Credit Facility due July 2028

Shentel Issuer LLC (“Shentel Issuer”), a limited-purpose, bankruptcy remote wholly-owned subsidiary of Shentel, closed its inaugural offering of $567,405,000 aggregate principal amount of secured fiber network revenue term notes, consisting of $489,142,000 5.64% Series 2025-1, Class A-2 term notes and $78,263,000 6.03% Series 2025-1, Class B term notes, each with an anticipated repayment date in December 2030 (collectively, the “Notes”). The Notes are secured by certain fiber network assets and related customer contracts primarily in the states of Virginia, Ohio, Pennsylvania, Indiana, and Maryland.

As part of the same Indenture and fiber network assets and related customer contracts that govern and secure the Notes, Shentel Issuer entered into a revolving $175.0 million variable funding note facility (the “VFN”) due December 2029 with a group of financial institutions. VFN advances will be subject to certain pro-forma leverage and debt service coverage ratios as defined in the Indenture. The VFN will bear interest at term Secured Overnight Financing Rate (“SOFR”) plus a margin of 1.75%. The Company had no borrowings under the VFN at Closing. The Company incurred approximately $15.0 million in upfront transaction fees to complete the Notes and VFN financings.

Concurrently, Shentel Broadband Operations LLC (“Shentel Broadband”), a wholly-owned indirect subsidiary of the Company, entered into a new $175.0 million Revolving Credit Facility (the “RCF”) due December 2030 with a group of financial institutions. The RCF is secured by substantially all of the assets and equity interests of its subsidiaries excluding Shentel Issuer; Shentel Guarantor LLC, a wholly-owned subsidiary of Shentel Broadband and parent of Shentel Issuer; Shentel Asset Entity I LLC, a wholly-owned subsidiary of Shentel Issuer; and Shentel Asset Entity II LLC, a wholly-owned subsidiary of Shentel Issuer. Borrowings under the RCF will bear interest at term SOFR plus a margin ranging from 2.50% to 3.00%. Shentel Broadband borrowed $75.0 million from the RCF at Closing.

"With the refinancing of our credit facilities, we have strengthened our balance sheet by extending maturities, reduced our cost of capital, and created financial flexibility as we complete our Glo Fiber expansion in 2026 and to use for general corporate purposes,” said Ed McKay, Shentel’s President and Chief Executive Officer. “We expect the refinancing will reduce our cost of debt by approximately 170 basis points and interest expense by approximately $10.0 million annually."

This press release does not constitute an offer to sell, or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Shenandoah Telecommunications Company

Shenandoah Telecommunications Company (Shentel) provides broadband services through its high speed, state-of-the-art fiber optic and cable networks to residential and commercial customers in eight contiguous states in the eastern United States. The Company’s services include: broadband internet, video, voice, high-speed Ethernet, dedicated internet access, dark fiber leasing, and managed network services. Shentel owns an extensive regional network with over 18,000 route miles of fiber. For more information, please visit www.shentel.com.

This release contains forward-looking statements and projections about Shentel regarding, among other things, its business strategy, its prospects, its financial position, and the cost of debt. These statements can be identified by the use of forward-looking terminology such as “believes,” “intends,” “may,” “will,” “should,” or “anticipates” or the negative or other variation of these or similar words, or by discussions of strategy or risks and uncertainties. The forward-looking statements are based upon management’s beliefs, assumptions and current expectations and may include comments as to Shentel’s beliefs and expectations as to future events and trends affecting its business that are necessarily subject to uncertainties, many of which are outside Shentel’s control. Although management believes that the expectations reflected in the forward-looking statements are reasonable, forward-looking statements are not, and should not be relied upon as, a guarantee of future performance or results, nor will they necessarily prove to be accurate indications of the times at which such performance or results will be achieved, and actual results may differ materially from those contained in or implied by the forward-looking statements. A discussion of factors that may cause actual results to differ from management’s projections, forecasts, estimates and expectations is available in Shentel’s filings with the Securities and Exchange Commission. Those factors may include, among others, changes in our ability to generate free cash flow, overall economic conditions including rising inflation, changes in tariffs, new or changing regulatory requirements, changes in technologies, changes in competition, changing demand for our products and services, our ability to execute our business strategies, availability of labor resources and capital, natural disasters, pandemics, and outbreaks of contagious diseases and other adverse public health developments. The forward-looking statements included are made only as of the date of the statement. Shentel undertakes no obligation to revise or update such statements to reflect current events or circumstances after the date hereof, or to reflect the occurrence of unanticipated events, except as required by law.

CONTACT:

Shenandoah Telecommunications Company
Lucas Binder
VP Corporate Finance
540-984-4800
lucas.binder@emp.shentel.com

^{1 Based on weighted-average interest rate of 5.77% of the Notes and new RCF borrowings as compared to the prior term and revolving loans weighted-average interest rate of 7.47% as disclosed in the Company’s most recent 10-Q filing.
2 Based on weighted-average interest rate of 5.77% of the Notes and new RCF borrowings multiplied by $585.4 million in existing debt prior to closing of the refinancing.}

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What did SHEN announce on December 5, 2025 about its credit facilities?

SHEN closed a refinancing including $567.405M secured fiber term notes due Dec 2030, a $175M VFN due Dec 2029, and a $175M RCF due Dec 2030.

How much does the SHEN refinancing reduce annual interest expense?

Management expects the refinancing will reduce interest expense by approximately $10.0 million annually.

What is the expected change in SHEN's cost of debt from the refinancing?

The company expects to lower its cost of debt by approximately 170 basis points.

What are the interest terms on the new SHEN secured fiber revenue notes and VFN?

The Series 2025-1 notes carry 5.64% (Class A-2) and 6.03% (Class B); the VFN bears term SOFR+1.75%.

How much was drawn on SHEN's new revolving credit facility at closing?

Shentel Broadband borrowed $75.0 million from the new revolving credit facility at closing.

What upfront costs did SHEN record for the refinancing of credit facilities?

The company incurred approximately $15.0 million in upfront transaction fees related to the Notes and VFN financings.