WOW! eyes $2.12 billion facility, $1.02 billion notes for Knology buy

By Sara Rosenberg

New York, May 8 - WOW! Internet, Cable & Phone expects to get a $2.12 billion credit facility and sell $1.02 billion of senior unsecured notes for its purchase of Knology Inc., according to a PREM14A filed with the Securities and Exchange Commission on Tuesday.

Credit Suisse Securities (USA) LLC and Morgan Stanley Senior Funding Inc. are the lead arrangers on the deal. RBC Capital Markets, SunTrust Robinson Humphrey Inc. and the Bank of Tokyo-Mitsubishi-UFJ Ltd. are involved as well.

The facility consists of a $200 million revolver and a $1.92 billion term loan.

As a back up for the notes, the company has received a commitment for a $1.02 billion senior unsecured bridge loan.

Other funds for the buyout will come from around $200 million of equity.

Under the agreement, WOW! will buy Knology for $19.75 per share in cash. The total transaction value is around $1.5 billion.

Closing is subject to stockholder approval, regulatory approvals and customary conditions.

WOW!, an Avista Capital Partners portfolio company, is a Denver-based provider of residential and commercial high-speed internet, cable television and telephone services. Knology is a West Point, Ga.-based provider of interactive communications and entertainment services.

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