RCN, Grande Communications talk $400 million eight-year notes to yield in 6¾% area; pricing Friday

By Paul A. Harris

Portland, Ore., Jan. 19 – RCN Telecom Services LLC and Grande Communications Networks LLC talked a $400 million offering of eight-year senior notes (Caa1/CCC+) to yield in the 6¾% area, according to market sources.

Official talk comes tight to the 7% initial guidance, a trader said.

Books close at 10:30 a.m. ET on Friday, and the deal, via issuing entities Radiate Holdco, LLC and Radiate Finance, Inc., is set to price thereafter.

UBS Investment Bank is the lead left bookrunner for the Rule 144A and Regulation S for life offering. Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Morgan Stanley & Co. LLC are the joint bookrunners.

The notes come with three years of call protection.

Proceeds, together with borrowings under the senior secured credit facilities, will be used to help fund the acquisitions of RCN Telecom Services for $1.6 billion and Grande Communications Networks for $650 million by TPG Capital, Google Capital and Patriot Media Management from Abry Partners.

RCN and Grande will be combined into one broadband services provider.

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