Knology plans loan amendment to extend debt, permit sale of notes and upsize revolver

By Sara Rosenberg

New York, Sept. 15 - Knology Inc. is looking to amend its credit facility to extend the maturity of some of its term loan debt, allow for the incurrence of additional secured or unsecured notes and increase the revolver to $35 million from $25 million, according to a news release.

Extended term loans will be priced at a higher rate than the existing term loans.

Also, as part of the amendment, any additional notes obtained must be used by the company to refinance the non-extended term loans.

"We view this contemplated transaction as an opportunistic financing motivated by improving credit markets," said M. Todd Holt, president and chief financial officer, in the release.

"Given the healthy free cash flow position of our business, the time to maturity of the current term loans and the flexibility of the current credit facility, we do not have an immediate need to address our current term loans. However, we believe the current credit environment may allow us, in an efficient manner, to better manage the existing maturities and further improve our balance sheet."

Knology is a West Point, Ga.-based provider of interactive communications and entertainment services.

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