Cablevision Systems has priced its offering of US$750m 5.25% senior notes due 2024 at par.
The US cableco initially planned to issue US$500m, but raised that amount by US$250m due to demand.
Cablevision intends to use the proceeds to repay debt…
Cablevision Systems has priced its offering of US$750m 5.25% senior notes due 2024 at par.
The US cableco initially planned to issue US$500m, but raised that amount by US$250m due to demand.
Cablevision intends to use the proceeds to repay debt incurred under its existing credit facility.
Moody’s rated the notes Ba2, in line with Cablevision’s corporate family rating. The agency also decided to bump up the cable operator’s unsecured bonds to Ba2 from Ba3.
In a report Moody’s said that although the transaction favourably extends maturities, it could increase annual interest expenses given that Cablevision is replacing bank debt with bonds. In its Q1 results the company disclosed net debt of US$8.2bn.
The New York-headquartered cableco has hired Citigroup to lead the bond offering, which will be issued through Cablevision subsidiary CSC Holdings.
Cablevision offers cable television, broadband and voice services, primarily in the greater New York area, and has a market capitalisation of US$4.69bn.
