Cequel gets consents from loan lenders for change of control

By Sara Rosenberg

New York, Aug. 1 - Cequel Communications Holdings LLC (Suddenlink Communications) received consents from a majority of its credit facility lenders allowing for a change of control, according to a news release.

Consents were received on July 31.

As previously reported, BC Partners and CPP Investment Board are acquiring the company for $6.6 billion from a group led by Goldman Sachs Capital Partners and including Quadrangle and Oaktree Capital Management.

The purchase price is comprised of $1,985,000,000 of total equity to be invested by BC Partners, CPPIB and certain members of Cequel management, plus the incremental debt of $500 million and the assumption of existing net liabilities of $4,094,000,000 as of March 31.

Cequel entered into a commitment for a $500 million senior unsecured bridge loan led by Credit Suisse Securities (USA) LLC to help fund the buyout.

The bridge loan is expected to be replaced with an equivalent amount of high-yield debt securities.

Closing is expected in the fourth quarter, subject to customary conditions, including receipt of required regulatory approvals.

Cequel is a St. Louis-based provider of television, high-speed Internet and telephony services.

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