Mega Broadband launches $650 million term B at Libor plus 350 bps

By Sara Rosenberg

New York, Oct. 8 – Mega Broadband Investments Holdings LLC launched on Thursday its $650 million seven-year term loan B with price talk of Libor plus 350 basis points with a 0.75% Libor floor and an original issue discount of 99, according to a market source.

The term loan has 101 soft call protection for six months, the source said.

The company’s $725 million of senior secured credit facilities also include a $75 million five-year revolver.

Truist Securities Inc., Credit Suisse Securities (USA) LLC, TD Securities (USA) LLC and Citizens are the joint bookrunners on the deal.

Commitments are due on Oct. 20, the source added.

Proceeds will be used to refinance existing debt and fund a distribution to existing shareholders.

On Sept. 28, it was announced that Cable One Inc. will make a strategic investment in Mega Broadband. Cable One will purchase a 45% minority stake from affiliates of GTCR for about $574.1 million in cash. The investment is expected to close in the fourth quarter. Cable One expects to fund the transaction through cash on hand.

Mega Broadband is a broadband provider.

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