US cableco Mediacom has secured US$900m in term loan commitments to extend debt maturities, redeem high coupon senior notes and establish a new revolving credit facility.
It agreed a US$250m term loan due 2017 and a US$300m term loan maturing in 2021,…
US cableco Mediacom has secured US$900m in term loan commitments to extend debt maturities, redeem high coupon senior notes and establish a new revolving credit facility.
It agreed a US$250m term loan due 2017 and a US$300m term loan maturing in 2021, the proceeds of which were used to fully repay a loan maturing in January 2015.
It also received commitments for a seven-year US$350m delayed-draw term loan. The company intends to complete and fund this loan in the third quarter of 2014 to fully redeem its 9.125% senior notes due 2019.
JP Morgan, BofA Merrill Lynch, Natixis, Wells Fargo, SunTrust Robinson Humphrey, Credit Suisse, Deutsche Bank and RBC Capital Markets led the transactions.
Mediacom’s CFO Mark Stephan commented: “These transactions largely complete the refinancing of significant term loans which were due to mature in January 2015, as well as fund the expected redemption of high coupon senior notes.”
“Together with the credit transactions we completed earlier this year, this latest round of financings meaningfully extends our debt maturities, gives greater strength to our balance sheet and places us in the best financial condition in our history.”
In March Mediacom issued US$200m senior notes to repay a portion of its outstanding US$744m term loan, also set to mature in January 2015.
In February Mediacom already took a chunk out of the US$744m loan after it secured a US$250m senior secured term loan and a US$225m revolver.
Mediacom is the US’ eighth-largest cableco and operates in the Midwest and southern states, focusing on smaller markets. It was taken private by founder Rocco Commisso in 2011 and has roughly one million customers.
