Cincinnati Bell plans new debt financing for purchase by Macquarie

By Sara Rosenberg

New York, March 13 – Cincinnati Bell Inc. has received a commitment for new debt financing to help fund its acquisition by Macquarie Infrastructure Partners, according to an 8-K filed with the Securities and Exchange Commission on Friday.

Goldman Sachs Bank USA, Regions Capital Markets and Societe Generale provided the debt commitment.

Under the agreement, Cincinnati Bell will be purchased for $15.50 per share in a cash transaction valued at about $2.9 billion, including debt.

Certain funds managed by the Private Equity Group of Ares Management Corp. have agreed to provide equity financing for the transaction.

Closing is expected in the first half of 2021, subject to customary conditions, including the approval by Cincinnati Bell’s shareholders, expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and receipt of other regulatory approvals.

Upon entering into the agreement with Macquarie Infrastructure Partners, Cincinnati Bell terminated its acquisition agreement with Brookfield Infrastructure.

The buyout by Brookfield was expected to be funded in part with $1.12 billion of senior secured credit facilities, split between a $200 million revolver and a $920 million term loan, and committed by BofA Securities Inc., BMO Capital Markets Corp., Citigroup Global Markets Inc., Bank of Nova Scotia, TD Securities (USA) LLC and Wells Fargo Securities LLC.

Cincinnati Bell is a Cincinnati-based provider of integrated communications solutions.

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