Hawaiian Telcom said today it has completed a debt refinancing that will reduce its borrowing costs.

Proceeds from the new $300 million term loan were used, along with $16 million of existing cash, to pay off the company’s outstanding term loan. Proceeds also were used to pay accrued interest and call premium amounts, as well as closing costs and other third party expenses related to the transaction.

“We are very pleased to close this new credit facility, which significantly lowers our cost of debt and provides us with improved covenant flexibility,” said Eric  Yeaman, Hawaiian Telcom’s president and chief executive officer.

Credit Suisse Securities LLC was sole lead arranger and sole bookrunner for the refinancing.