Pops nearly 50% on debt news — Tucows stock
Tucows makes moves that could clear the path to a Ting Fiber sale.
Shares in Tucows (NASDAQ: TCX) are up sharply today following the firm disclosed changes to its debt structure and a data center deal that might foreshadow a sale of its Ting Fiber business.
As of 10:55 am ET, shares are up 48% to $14.40.
The firm has been saddled by debt agreements related to its Ting Fiber subsidiary, and failed to make preferred return payments last year.
Today, the firm disclosed:
- It amended existing credit facilities to extend the maturity by nearly two years until July 27, 2029
- It bought out a preferred member that issued a Return Breach and Trigger Event notice last year
- Tucows bought a data center asset from Ting Fiber for $6 million
The data center agreement will make it easier for Tucows to sell its Ting Fiber business. The data center is primarily used by Tucows’ other businesses, Tucows Domains and Wavelo. Tucows noted that “this transaction places the data centre ownership outside of any possible outcomes of the Ting Fiber LLC strategic process.”
Tucows notes earnings on Thursday, August 6, at which point it will likely provide more details regarding the Ting sale process.
