Source: Windstream Press Release

Windstream Corp. (Nasdaq:WIN) announced that it intends to offer in a private placement $500 million aggregate principal amount of senior notes that will mature in 2022 and bear interest at a fixed rate. The offering is expected to be completed before the end of November 2011, subject to market and other conditions.

If the offering is successfully placed, Windstream expects to use the net proceeds of the offering to redeem the approximately $201.5 million aggregate principal amount of its outstanding 8.625% Senior Notes due 2016, with the remaining net proceeds to be used to repay amounts that Windstream has borrowed under its revolving credit facility.  Assuming consummation of its pending acquisition of PAETEC Holding Corp. (“PAETEC”), which, pending state and federal regulatory approvals, is expected to close by the end of 2011, Windstream intends to use borrowings under its revolving credit facility to repurchase the $300.0 million aggregate principal amount of PAETEC’s outstanding 9.5% Senior Notes due 2015.