WideOpenWest to launch $2.12 billion credit facility on Wednesday

By Sara Rosenberg

New York, June 12 - WideOpenWest Finance LLC (WOW!) has scheduled a bank meeting for 11 a.m. ET on Wednesday to launch a proposed $2.12 billion credit facility, according to sources.

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

The facility consists of a $200 million five-year revolver and a $1.92 billion seven-year first-lien term loan B, sources said.

Price talk on the term loan B is Libor plus 500 basis points with a 1.25% Libor floor and an original issue discount of 981/2, sources continued.

Also, the term loan B includes 101 soft call protection for one year.

Proceeds will be used to help fund the acquisition of Knology Inc. for $19.75 per share in cash. The total transaction value is around $1.5 billion.

Other funds for the purchase are expected to come from $1.02 billion of senior unsecured notes and around $200 million of equity.

Backing the bonds is a $1.02 billion senior unsecured bridge loan that was launched into syndication around mid-May.

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

WideOpenWest, 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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