Knology to launch $720 million term loan A and B debt on Wednesday

By Sara Rosenberg

New York, Feb. 8 - Knology Inc. is set to hold a conference call on Wednesday to launch $720 million of term loans, according to a market source.

Credit Suisse is the lead bank on the deal.

The debt is comprised of a $545 million term loan B due August 2017 that is talked at Libor plus 300 basis points with a 1.5% Libor floor and is being offered at par and a $175 million term loan A due February 2016 that is talked at Libor plus 325 bps with no floor and is also being offered at par, the source said.

The term loan B includes 101 soft call protection for one year.

Proceeds will be used to refinance the existing term loan B and term loan A that have the same sizes but are priced at Libor plus 400 bps. The existing B loan has a 1.5% Libor floor and was sold at an original issue discount of 99. The debt was obtained in October 2010 to fund the acquisition of Sunflower Broadband and to refinance existing debt.

The company's existing revolver will be left unchanged.

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

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