Knology to get new debt financing for purchase of Sunflower Broadband

By Sara Rosenberg

New York, Aug. 4 - Knology Inc. plans on getting additional debt to help fund its acquisition of Sunflower Broadband, company officials said in a conference call on Wednesday.

Credit Suisse and SunTrust have fully committed to provide the new debt.

"We will monitor the credit markets and decide on the most efficient way to finance the deal while at the same time provide flexibility for continued growth in the business," officials said in the call.

"The credit markets are strong right now. Both high-yield and bank debt. We'll monitor the markets and do the best deal we can. Focused on pricing and maintaining flexibility to grow."

The company declined to comment on expected pricing for the new debt.

With this transaction, leverage is not expected to increase by that much. Post funding, the company anticipates leverage at slightly greater than 4 times with the ability to reduce that number very quickly.

Under the agreement, Knology is buying Sunflower Broadband, a provider of video, voice and data services to residential and business customers in Douglas County and Lawrence, Kan., for $165 million in cash.

Other funds for the transaction will come from cash on hand.

Closing is expected in the fourth quarter, subject to certain conditions including regulatory approvals.

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

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