Atlantic Broadband flexes $900 million loan to Libor plus 250 bps

By Sara Rosenberg

New York, July 27 – Atlantic Broadband (Cogeco Financing 2 LP) lowered pricing on its $900 million seven-year incremental senior secured first-lien term loan B (B1/BB) to Libor plus 250 basis points from Libor plus 275 bps, according to a market source.

Also, the original issue discount on the term loan was tightened to 99.75 from 99.5, the source said.

The term loan still has a 0.5% Libor floor, 101 soft call protection for six months, and a ticking fee of half the margin from days 46 to 90 and the full margin thereafter.

Credit Suisse Securities (USA) LLC, Wells Fargo Securities LLC, CIBC, BMO Capital Markets, BofA Securities Inc. and National Bank of Canada are the lead arrangers on the deal.

Recommitments are due at 10 a.m. ET on Wednesday, the source added.

Proceeds will be used with cash on hand to fund the $1.125 billion acquisition of WideOpenWest Inc.’s broadband systems in Ohio and to pay fees and expenses.

Closing is targeted for the first quarter of fiscal 2022, subject to regulatory approvals and other customary conditions.

Net debt to adjusted EBITDA is expected to be 5x.

Atlantic Broadband, a subsidiary of Cogeco Communications Inc., is a Quincy, Mass.-based cable operator.

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