Cable One has launched the syndication of a new $350 million senior secured revolving credit facility, a new $250 million senior secured term loan A facility and a new $450 million senior secured delayed draw term loan A facility.
The new credit facilities are expected to mature five years after the closing date of the financing, and the delayed draw term loan A is expected to be available to be drawn at any time during the first nine months following the closing date of the financing.
The company intends to apply the proceeds of the new credit facilities, together with cash on hand and borrowings under its previously established $325 million senior secured delayed draw term loan “B-3” facility, to refinance its existing senior secured revolving credit facility and senior secured term loan A facility, redeem its outstanding 5.75% senior unsecured notes due 2022 on or after June 15, 2019 when the call premium steps down, finance the company’s pending acquisition of Fidelity Communications’ data, video and voice business and certain related assets, and for other general corporate purposes.
J.P. Morgan is acting as lead arranger on the transaction.
Cable One is a broadband communications provider serving more than 800,000 residential and business customers in 21 states.