Grande Communications restructures $125 million deal, to sell secured notes with warrants

By Paul A. Harris

St. Louis, March 9 - Grande Communications Holdings Inc. restructured its $125 million offering of 10-year notes (Caa2/CCC) on Tuesday, market sources said.

The San Marcos, Texas-based internet, local and long-distance telephone and cable television company is now reported to be marketing senior secured notes with warrants. Previously the company had been heard to be in the market with senior unsecured notes with no warrants.

Unofficial price talk has the notes coming with a 14% coupon, pricing at a discount to yield 15%. One market source said that terms had been anticipated late Tuesday. However no terms had been heard before Prospect News went to press.

Bear Stearns & Co. is running the books on the Rule 144A offering. Deutsche Bank Securities is the co-manager.

Proceeds will be used to refinance existing debt, to fund capital expenses and for general corporate purposes.

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