US cableco Cox Communications is offering 10- and 20-year senior unsecured notes, ratings agencies have said.
The company is planning to use the proceeds for general corporate purses, which could include the refinancing of debt maturing in 2014 and 2015…
US cableco Cox Communications is offering 10- and 20-year senior unsecured notes, ratings agencies have said.
The company is planning to use the proceeds for general corporate purses, which could include the refinancing of debt maturing in 2014 and 2015 and worth US$1bn.
Some of the money may also go towards funding all or a portion of a dividend to Cox’s parent company, Cox Enterprises (CEI).
As of 30 September, CEI had approximately US$12.7bn of outstanding debt including US$9.2bn owed by Cox.
Fitch rated the offering BBB+, while S&P gave a BBB and Moody’s a Baa2.
“Fitch’s ratings reflect the size and strong competitive position of [Cox], the company’s largest business segment and the third-largest cable multiple system operator (MSO) in the US,” the agency said in a statement.
As a result of the bond issue, S&P expects gross leverage to increase by about US$500m, and adjusted debt to EBITDA to rise minimally to around 2.8x from 2.7x as of 30 September.
Atlanta-based Cox is the US’ third-largest cableco, after Comcast and Time Warner Cable, which are currently awaiting regulatory approval for their US$45bn merger.
The company provides video, high-speed data and phone services to residential and commercial customers, and offers national and local cable advertising in traditional spot and new media formats.
