Knology cuts pricing on $570 million term B to Libor plus 400 bps

By Sara Rosenberg

New York, Sept. 29 - Knology Inc. lowered pricing on its $570 million term loan B to Libor plus 400 basis points from Libor plus 450 bps as a result of strong demand, according to a market source.

Additionally, the Libor floor on the term loan B was moved to 1.5% from 1.75%, and the original issue discount tightened to 99 from 981/2, the source said.

Recommitments towards the B loan were due at 5 p.m. ET on Wednesday and allocations are hoped to go out on Thursday.

The company's $770 million credit facility (B1/B+) also includes a $50 million revolver and $150 million term loan A that are both priced in line with original talk at Libor plus 400 bps.

Credit Suisse and SunTrust are the lead banks on the deal that will be used, along with cash on hand, to fund the acquisition of Sunflower Broadband for $165 million in cash and to refinance existing debt.

Knology is a West Point, Ga.-based provider of interactive communications and entertainment services. Sunflower is a provider of video, voice and data services to residential and business customers.

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