Redwood advises Telscape and SAGE Telecom on their NMTC financing

NEW YORK | LOS ANGELES | GENEVA | May 30th, 2013 – Redwood Capital Group (“Redwood”) announced today that TSC Acquisition Corporation, the holding company to both Los Angeles-based Telscape Communications, Inc. and Dallas-based Sage Telecom, Inc. (“TSC”) has secured approximately $15 million in New Market Tax Credits from Texas Mezzanine Fund (the “NMTC Transaction”). Redwood acted as exclusive financial advisor to TSC in connection with the NMTC Transaction. This is the third transaction in which Redwood has exclusively advised TSC.

TSC, headquartered in Los Angeles, CA, is the premier, facilities-based competitive local exchange carrier (“CLEC”) and high speed internet services provider serving Hispanic-American consumers. With more than 190,000 broadband, mobile and wireless subscribers, TSC’s subscriber base represents the largest growing demographic group in the U.S. Telscape-Sage covers fifteen states, providing services ranging from wireline services, high speed internet, wireless services, and mobile data to a large portion of the underserved telecommunications market in the U.S.

Mr. Joseph Holop, Chief Operating Officer of TSC said, “This financing will allow TSC to augment its wireline, wireless and high speed Internet service offerings for our rapidly growing demographic and client base. The quality of Redwood’s work and financing relationships were critical to complete this complex financing, and we are very excited to seek Redwood’s services when needed. Redwood Capital Group will remain the exclusive financial advisor to TSC going forward and we will continue to rely on their expertise as we intend to be very acquisitive in this segment of the telecommunications market.”