Choice One Communications' bank debt continues to move higher in the secondary loan market, gaining more than 20 points over the last two months with levels now quoted in the 60-63 range. At least one trade is believed to have been completed around the 61 context last week. The company recently announced that it has achieved its first full quarter of positive free cash flow. It generated approximately $1.5 million in cash after capital expenditures, cash interest and working capital compared to a loss of $6.1 million in the prior quarter. The company's cash burn and liquidity position had been a concern contributing to the fear that Choice One was at risk for an in-court restructuring (LMW, 8/30).
Choice One's full third quarter figures will not be released until November. But according to Choice One's second quarter filing, the company had a $125 million "A" term loan, a $125 million "B" piece, $43.284 million on its "C" tranche, $2.625 million on its "D" loan and $100 million outstanding on its revolver. Calls to Ajay Sabherwal, Choice One's executive v.p. and cfo, were referred to his assistant, who could not be reached. Calls to company spokeswoman were not returned.