Cable One readies launch of $600 million term loan B-4 for Monday

By Sara Rosenberg

New York, April 23 – Cable One Inc. is scheduled to hold a lender call at 1 p.m. ET on Monday to launch a $600 million seven-year covenant-lite term loan B-4, according to a market source.

Wells Fargo Securities LLC, JPMorgan Chase Bank, BofA Securities Inc., Credit Suisse Securities (USA) LLC, TD Securities (USA) LLC, Truist and U.S. Bank are the lead arrangers on the deal.

The term loan has 101 soft call protection for six months and amortization of 1% per annum, the source said.

Security is a first priority lien on substantially all domestic assets and stock of material subsidiaries.

Expected term loan ratings are Ba2/BB+.

Commitments are due at noon ET on April 30, the source added.

Proceeds will be used to repay the $589 million term loan B that can be assumed with the purchase of Hargray Communications, a regional communications provider, to pay related fees and expenses and for general corporate purposes.

In February, the company announced an agreement to purchase the roughly 85% of Hargray that it does not already own. The transaction implies a $2.2 billion total enterprise value for 100% of the equity interests of Hargray on a debt-free and cash-free basis.

The purchase price for Hargray is expected to be funded with proceeds from convertibles, existing cash resources and revolving credit facility capacity.

Closing is expected this quarter, subject to regulatory approvals and other customary conditions.

Cable One is a Phoenix-based broadband communications provider.

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