Atlantic Broadband launches $900 million loan at Libor plus 275 bps

By Sara Rosenberg

New York, July 19 – Atlantic Broadband (Cogeco Financing 2 LP) was scheduled to hold a lender call at 2 p.m. ET on Monday to launch a $900 million seven-year incremental senior secured first-lien term loan B (B1/BB) that is talked at Libor plus 275 basis points with a 0.5% Libor floor and an original issue discount of 99.5, according to a market source.

The incremental term loan has 101 soft call protection for six months and a ticking fee of half the margin from days 46 to 90 and the full margin thereafter, the source said.

Credit Suisse Securities (USA) LLC, Wells Fargo Securities LLC, CIBC, BMO Capital Markets, BofA Securities Inc. and National Bank of Canada are the lead arrangers on the deal.

Commitments are due at 5 p.m. ET on July 28, the source added.

Proceeds will be used with cash on hand to fund the $1.125 billion acquisition of WideOpenWest Inc.’s broadband systems in Ohio and to pay fees and expenses.

Closing is targeted for the first quarter of fiscal 2022, subject to regulatory approvals and other customary conditions.

Net debt to adjusted EBITDA is expected to be 5x.

Atlantic Broadband, a subsidiary of Cogeco Communications Inc., is a Quincy, Mass.-based cable operator.

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