WideOpenwest to Host Call Today to Discuss Loan RefinancingMichael Amato
WideOpenWest LLC, the cable operator, hosted a lender call this morning to discuss refinancing its $1.92 billion term loan due in 2018, according to the person.
The debt will pay interest at 3.5 percentage points more than the London interbank offered rate and will be sold at par, said the person, who asked not to be identified because the information is private. Libor, a rate banks say they can borrow in dollars from each other, will have a 1.25 percent floor.
Lenders are being offered six months of soft-call protection of 101 cents, meaning the company would have to pay 1 cent more than face value to refinance the debt during the first six months.
JPMorgan Chase & Co., Credit Suisse Group AG, Morgan Stanley, Royal Bank of Canada and SunTrust Banks Inc. are arranging the transaction and commitments are due Feb. 5 by 5 p.m. in New York, according to the person.
The company’s existing term loan pays interest at 5 percentage points more than Libor, with a 1.25 percent floor, according to data compiled by Bloomberg. The debt was sold to investors at 96 cents on the dollar and was quoted at 101.875 cents today, the data show.
Cathy Kuo, a spokeswoman for WideOpenWest, didn’t immediately respond to an e-mail seeking comment.