Cable One borrows $450 million of delayed-draw term loan A

By Sarah Lizee

Olympia, Wash., Oct. 1 – Cable One, Inc. borrowed $450 million of delayed-draw term loan A on Tuesday, according to an 8-K filing with the Securities and Exchange Commission.

Proceeds were used by the company to help finance its acquisition of the data, video and voice business and some related assets of Fidelity Communications Co.

JPMorgan Chase Bank, NA is the administrative agent for the term loans.

The delayed-draw term A loan will mature on May 8, 2024 and will bear interest at Libor plus 125 basis points to 175 bps, based on the company’s total net leverage ratio.

The principal amount will amortize together with the company’s existing senior secured term A loans, in equal quarterly installments at a rate of about 2.5% per annum for the first three quarters following the borrowing date, about 2.5% per annum for the second year following the borrowing date, about 5% per annum for the third year following the borrowing date, about 7.5% per annum for the fourth year following the borrowing date, and about 12.5% per annum for the fifth year following the borrowing date, with the balance due upon maturity.

The delayed-draw term A loan will have the same terms as, and will constitute one class of term loans with, the existing term A loans.

Cable One is a Phoenix-based broadband communications provider.

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