Mediacom subsidiaries wrap 9½%, 7 7/8% notes offer; remainder called

By Jennifer Chiou

New York, Sept. 9 - Mediacom Communications Corp. subsidiaries Mediacom LLC and Mediacom Capital Corp. announced the close of 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 tender offers began on Aug. 11 and expired at 11:59 p.m. ET on Sept. 8.

The companies previously eliminated the cap after it 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 called for redemption at par all notes that were not purchased in the tender offers. The redemption date is Sept. 24.

On Aug. 25, the companies accepted and paid for all notes validly tendered as of 5 p.m. ET on Aug. 24, the early tender deadline, including $385.2 million of 9½% notes and $63.6 million of the 7 7/8% notes.

Since the early deadline, holders have tendered a further $5 million of 9½% notes and $7.5 million of 7 7/8% notes, making the final results:

• $390.2 million, or 78%, of the 9½% notes; and

• $71.1 million, or 57%, of the 7 7/8% notes.

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

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

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

Mediacom already 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) were the dealer managers, and Global Bondholder Services Corp. (866 873-7700) was the information agent.

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

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