Cincinnati Bell enters into $425 million term loan and revolver

Chicago, Sept. 7 – Cincinnati Bell Inc. (RF Merger Sub, Inc.) signed a $450 million credit facility on Sept. 7 in connection with its merger with Red Fiber Parent, LLC, according to an 8-K filing with the Securities and Exchange Commission.

Goldman Sachs Bank USA is the administrative agent.

The facility consists of a $150 million seven-year senior secured term loan and a $275 million five-year senior secured revolving facility.

There is a sublimit of $40 million for letters of credit.

For the term loans, interest will be between Libor plus 375 basis points and 475 bps, based on secured net leverage.

The revolver will have interest between Libor plus 375 bps and 425 bps. The commitment fee is either 37.5 bps or 50 bps, also based on net leverage.

The letter-of-credit issuers and lenders are Goldman Sachs Bank USA, Regions Capital Markets, Societe Generale, CoBank, ACB and MUFG Union Bank, NA as joint lead arrangers and joint bookrunners.

Co-managers are Fifth Third Bank, NA, PNC Bank, NA, First Financial Bank and First Hawaiian Bank.

Proceeds of the loans drawn at closing, with other sources of funds, were used to refinance the existing credit agreement, to pay fees and expenses related to the merger, add cash to the balance sheet and for general corporate purposes.

The credit agreement from Oct. 2, 2017 was terminated at closing. Morgan Stanley Senior Funding, Inc. had been the administrative agent.

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

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