Knology trims term A to Libor plus 300 bps, cuts B loan Libor floor

By Sara Rosenberg

New York, Feb. 16 - Knology Inc. lowered pricing on its term loan A due February 2016 to Libor plus 300 basis points from Libor plus 325 bps, according to a market source, who said there is still no Libor floor and a par offer price on the tranche.

As for the term loan B due August 2017, pricing was left unchanged at Libor plus 300 bps, but the Libor floor was tightened to 1% from 1.5%. This debt is still being offered at par and includes 101 soft call protection for one year.

In addition, the company is considering the increase of its term loan debt by $20 million. Whether the upsizing will be done or to which tranche, however, has not yet been decided, the source said. The term loan A was launched with a size of $175 million and the term loan B was launched with a size of $545 million.

Credit Suisse is the lead bank on the deal (B1).

Proceeds will be used to refinance the existing $545 million term loan B and $175 million term loan A that 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 to fund the acquisition of Sunflower Broadband and to refinance existing debt.

If the term loan borrowings are upsized, the extra proceeds will be used to add cash to the balance sheet.

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.