US cableco Mediacom Communications has secured an incremental US$200m senior secured term loan facility maturing on 20 January 2020.
The company said that proceeds of the loan, which is part of Mediacom’s “broadband credit facility” programme that…
US cableco Mediacom Communications has secured an incremental US$200m senior secured term loan facility maturing on 20 January 2020.
The company said that proceeds of the loan, which is part of Mediacom’s “broadband credit facility” programme that consists of revolving credit commitments and term loans, will be used to repay outstanding revolving borrowings from its credit facility.
Proceeds may also go towards purchasing a portion of its outstanding 8.5% senior notes due 2015.
The loan was taken out by Mediacom subsidiary Mediacom Broadband.
Borrowings bear interest at a floating rate or rates equal to the eurodollar rate or the base rate, plus a margin of 3% for eurodollar rate loans and a margin of 2% for base rate loans.
The eurodollar rate and the base rate will be subject to a floor of 1%.
Following the borrowing of this most recent term loan G, there are three term loans outstanding under the broadband credit facility: term loan D, term loan F and term loan G.
Increases note buyback
Mediacom is also planning to increase its purchase of 8.5% notes from US$300m to US$350m.
Last week, it announced an offering of US$300m of 6.375% notes, the proceeds of which would be used to buy up to US$300m of its 8.5% notes.
