Cablevision Lightpath launches $600 million term B to investors

By Sara Rosenberg

New York, Sept. 9 – Cablevision Lightpath held a lender call at 10 a.m. ET on Wednesday to launch a $600 million seven-year first-lien term loan B (B1/B+) that is talked at Libor plus 350 basis points to 375 bps with a 0.5% Libor floor and an original issue discount of 99, according to a market source.

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

In addition, the term loan has a ticking fee of half the margin from days 46 to 90 and the full margin thereafter.

Goldman Sachs Bank USA, RBC Capital Markets, Deutsche Bank Securities Inc. and Morgan Stanley Senior Funding Inc. are the leads on the deal.

Commitments are due on Sept. 16, the source added.

Proceeds will be used to help fund the acquisition of a 49.99% interest in the company by Morgan Stanley Infrastructure Partners from Altice USA for an implied enterprise value of $3.2 billion.

Altice USA will receive total gross cash proceeds of about $2.3 billion from the sale and related financing activity.

Upon closing, Cablevision Lightpath will be financed independently outside of the CSC Holdings LLC debt silo. A portion of the net proceeds after tax are expected to be used by Altice USA to repay debt such that the transaction is at least leverage-neutral to CSC Holdings.

Closing is expected in the fourth quarter, subject to customary regulatory approvals.

Cablevision Lightpath is an enterprise-grade fiber connectivity, bandwidth and managed services provider in the New York metropolitan area.

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