Midcontinent Communications talks $100 million tap of 6 7/8% notes due 2023 at 107.25 area

By Paul A. Harris

Portland, Ore., July 18 – Midcontinent Communications and Midcontinent Finance Corp. are in the market with a $100 million add-on to their 6 7/8% senior notes due Aug. 15, 2023 (expected ratings B3/B), according to a syndicate source.

Price talk is in the 107.25 area, plus or minus 0.125, the source added.

The Rule 144A and Regulation S for life deal is set to price on Tuesday.

SunTrust Robinson Humphrey Inc. is the left bookrunner. Wells Fargo Securities LLC and RBC Capital Markets LLC are the joint bookrunners.

TD Securities, U.S. Bancorp Investments Inc., Barclays, BNP Paribas Securities Corp. and MUFG are the co-managers.

The notes become callable after Aug. 15, 2018 at 105.156.

The Sioux Falls, S.D.-based regional cable operator plans to use the proceeds, along with its upsized revolver and its incremental term loan, to refinance its 6¼% notes due 2021.

The original $300 million issue priced at par in August 2015.

A previous $125 million add-on priced at 105.5 to yield 5.55% on Nov. 1, 2016.

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