Mega Broadband flexes $650 million term loan B to Libor plus 300 bps

By Sara Rosenberg

New York, Oct. 16 – Mega Broadband Investments Holdings LLC reduced pricing on its $650 million seven-year term loan B to Libor plus 300 basis points from Libor plus 350 bps and added a step-down to Libor plus 275 bps when leverage is 4.75x, according to a market source.

The term loan still has a 0.75% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

The company’s $725 million of senior secured credit facilities (B2/B+) 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.

Recommitments were scheduled to be due by the end of the day on Friday, 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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