Cincinnati Bell extends consent solicitation for 7¼% 2013 notes

By Paul Deckelman

New York, Jan. 24 - Cincinnati Bell Inc. said it has extended its previously announced consent solicitation to the holders of its 7¼% senior notes due 2013 to 5 p.m. ET on Jan. 25, subject to possible further extension, from the original Jan. 21 expiration.

As previously announced, Cincinnati Bell, a Cincinnati-based provider of local telephone exchange and wireless communications services in Ohio, Kentucky and Indiana, said on Jan. 12 that it had begun soliciting consents to proposed indenture changes from the holders of the 7¼% notes. It set an initial expiration deadline of 5 p.m. ET on Jan. 21, although this has now been extended.

The company said the primary purpose of the solicitation would be to facilitate its two-stage refinancing plan, which Cincinnati Bell expects will significantly reduce interest expense and increase cash flow if and when it is fully implemented.

In the first stage, which Cincinnati Bell intends to complete promptly after completion of the consent solicitation, it will refinance its existing senior secured credit facility, using the proceeds from the issuance of about $350 million of new senior unsecured notes, and with borrowings under a new senior secured revolving credit facility.

In the second stage, the company will redeem all its 16% senior subordinated discount notes due 2009 using a combination of cash from operations and new senior debt, which may include senior secured debt in whole or in part. Cincinnati Bell expects to complete the second stage of the refinancing plan in the first quarter of 2006. The company noted that the 16% notes may be called at a fixed price at any time on or after March 26, 2006.

The company said that its consent solicitation would be conditioned on the receipt of consents from holders of at least a majority of the outstanding principal amount of the 7¼% notes, and other customary conditions.

It said it would pay a consent fee of $12.50 per $1,000 principal amount of notes for which consents properly delivered by the expiration deadline and not subsequently revoked.

Banc of America Securities LLC (call 888 292-0070 or call collect at 704 388-4813) and Credit Suisse First Boston LLC (call 800 820-1653 or call collect at 212 538-0652) are the solicitation agents. The information agent is Citigate Financial Intelligence (call 877 746-3583 or call collect at 201 499-3500). The Bank of New York is tabulation agent for the consent solicitation.

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