Mediacom holders tender 77% of 9½% notes, 51% of 7 7/8% notes

By Susanna Moon

Chicago, Aug. 25 - Mediacom Communications Corp. subsidiaries Mediacom LLC and Mediacom Capital Corp. said holders tendered $385.2 million principal amount, or 77%, of the $500 million of 9½% senior notes due 2013 and $63.6 million principal amount, or 51%, of the $125 million of 7 7/8% senior notes due 2011.

The companies said they accepted all the 9½% notes and 7 7/8% notes tendered as of 5 p.m. ET on Aug. 24, the early tender date.

The settlement date for the tendered notes is Tuesday.

The tender offers will expire at 11:59 p.m. ET on Sept. 8. They began on Aug. 11.

On Aug. 13 the Mediacom subsidiaries said they eliminated the cap from the tender offers for their $500 million of 9½% senior notes due 2013 and $125 million of 7 7/8% senior notes due 2011.

The companies had originally planned to purchase any and all of the 9½% notes and a principal amount of 7 7/8% notes equal to the difference between $500 million and the principal amount of 9½% notes accepted for purchase.

In addition, the companies now plan to call for redemption all notes that are not purchased in the tender offers.

For each $1,000 principal amount, the purchase price is $982.50 for the 9½% notes and $980.00 for the 7 7/8% notes. Both prices include a $20.00 early tender payment for each note tendered by the early tender date.

The companies will also pay accrued interest up to but excluding the payment date.

The companies' obligation to accept and purchase notes is subject to a number of conditions that include the receipt of financing. The tender offers are not contingent on the tender of any minimum principal amount of notes.

Mediacom said its subsidiaries plan to fund the offers with the proceeds from a new issuance of $350 million senior notes and $300 million of borrowings under a new tranche of incremental term loans.

Wells Fargo Securities (866 309-6316) and Citi (800 558-3745) are the dealer managers, and Global Bondholder Services Corp. (866 873-7700) is the information agent.

Mediacom is a cable television company based in Middletown, N.Y.

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