Knology downsizes term loan B to $545 million, shifts $25 million to term loan A

By Paul A. Harris

St. Louis, Sept. 30 - Knology Inc. downsized its term loan B to $545 million from $570 million and shifted $25 million of proceeds to its term loan A, increasing its size to $175 million from $150 million, market sources said on Thursday.

The shift of proceeds reflects strong demand for the Libor plus 400 basis points term loan A.

As previously reported, the company lowered pricing on the term loan B to Libor plus 400 bps from Libor plus 450 bps as a result of strong demand.

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.

The company's $770 million credit facility (B1/B+) also includes a $50 million revolver talked 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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