Cincinnati Bell has secured a new US$540m seven-year term loan to redeem an outstanding bond.
To perform the transaction, the US regional telco had to amend its corporate credit agreement to incorporate the new debt.
The term loan B facility due…
Cincinnati Bell has secured a new US$540m seven-year term loan to redeem an outstanding bond.
To perform the transaction, the US regional telco had to amend its corporate credit agreement to incorporate the new debt.
The term loan B facility due September 2020 priced at Libor plus 300 basis points, with a Libor floor of 1%, and 0.75% of original issue discount.
In August Cincinnati Bell said it was seeking a US$400m facility, but later upsized the debt offering which allows it to redeem the whole series of notes. It plans to buy back all US$500m of its outstanding 8.25% senior notes due 2017.
Morgan Stanley acted as joint lead arranger and book manager according to an SEC filing. Barclays, Deutsche Bank, Morgan Stanley, RBS, UBS, Citigroup and Keybank were co-syndication agents.
BofA Merrill Lynch acted as administrative agent and PNC Bank was swingline lender.
The Ohio-based telco redeemed some notes from the series through an offering last November.
Cincinnati Bell secured in January US$360m by listing 28% of its data centre subsidiary, CyrusOne, as a real estate investment trust.
The operator offers fixed-line and mobile services, but has also branched out into IPTV and payphones. It operates in Ohio, Indiana and Kentucky and reported revenues of US$1.5bn for 2012 and US$535m adjusted EBITDA.
