Cincinnati Bell tweaks covenants for leverage ratios, capital spending

By Susanna Moon

Chicago, Nov. 6 – Cincinnati Bell Inc. amended its credit agreement Wednesday with Bank of America NA as administrative agent to modify financial covenants for leverage ratios and capital expenditures, according to an 8-K filing with the Securities and Exchange Commission.

PNC Bank, NA is the swingline lender and a letter-of-credit issuer.

The maximum consolidated total leverage ratio was set at 7 times for the fiscal quarters ending June 30 through March 31, 2016; at 6.5 times for the quarters ending June 30, 2016 through Dec. 31, 2016; at 6 times for the quarters ending March 31, 2017 through Sept. 30, 2017; at 5.5 times for quarters through Dec. 31, 2017 through June 30, 2018; and at 5 times for the quarter ending Sept. 30, 2018 and each fiscal quarter ending after that.

Also, the amount of all consolidated capital expenditures in any fiscal year was revised to $210 million for fiscal year 2014, $285 million in 2015, $300 million in 2016, $165 million in 2017 and $160 million in 2018 and each fiscal year after that.

The amendment provides that up to $50 million of the amount for any fiscal year, if not expended in the fiscal year for which it is permitted, may be carried over for expenditure in the following fiscal year. And, if any amount is carried over, it will be deemed used in the subsequent fiscal year after the amount otherwise permitted during the fiscal year.

Cincinnati Bell is a Cincinnati-based owner, operator and developer of enterprise-class, carrier-neutral data center properties.

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