Cincinnati Bell to amend loan, providing for new term loan, allowing for convertible buyback

By Sara Rosenberg

New York, Oct. 30 - Cincinnati Bell Inc. plans to amend its existing senior credit facility to provide for a new term loan and allow for the refinancing of its convertible subordinated notes.

The term loan would be used to repay all outstanding borrowings under the existing term loan facilities and to permanently reduce a portion of the revolver, according to a news release.

As of June 30, the total size of the existing credit facility was about $1.43 billion consisting of $643.6 million in revolving credit (with about $207.2 million in additional borrowing capacity left at that time), $343.2 million in term loan A, $306.3 million in term loan B and $136.8 million in term loan C, according to a filing with the Securities and Exchange Commission.

The existing revolver carries an interest rate of Libor plus 425 basis points and the existing term loans carry an interest rate of Libor plus 375 basis points.

Approximately $540 million of senior subordinated notes will sold to retire the company's convertible subordinated notes due 2009. The note sale is conditioned upon the consummation of the amendment to the credit facility.

Cincinnati Bell is a Cincinnati full-service provider of data and voice communications services, and a regional provider of wireless communications services.

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