(CHARLOTTE) -- FairPoint Communications, Inc. has made a voluntary debt prepayment. The prepayment on its term loan totaled $25 million.

With this repayment, FairPoint's term loan is down from $995 million as of June 30th, 2012 to $970 million as of August 31st, 2012.  FairPoint made the $25 million prepayment out of cash on hand.

"This is a significant milestone. Our continued focus on free cash flow generation gave us the confidence to make this voluntary prepayment," said Ajay Sabherwal, FairPoint's executive vice president and chief financial officer.  "We believe reducing debt benefits all our stakeholders and is a key objective for us."

Charlotte-base FairPoint serves communities in 18 states with broadband Internet access, local and long-distance phone, television and other high-capacity data services.