Cincinnati Bell to get approximately $448 million credit facility to repurchase notes

By Sara Rosenberg

New York, Aug. 10 - Cincinnati Bell Inc. is planning on getting a new credit facility of about $448 million to fund the approximately $448 million repurchase of its outstanding 16% senior subordinated discount notes due 2009, a company spokesman told Prospect News Wednesday.

Credit Suisse First Boston and Bank of America are the lead banks on the deal.

The new bank borrowings will likely come in the form of a term loan, the spokesman said, adding that the existing revolver that was completed early this year will likely remain in place as is. No amendment to the revolver will be needed to allow for the incremental bank debt.

The note repurchase is conditioned on completion of financing.

As a result of lower interest expense, this refinancing, which is expected to close in the third quarter, is anticipated to increase free cash flow by $20 million to $25 million on an annualized basis.

Cincinnati Bell is a Cincinnati-based local exchange and wireless provider.

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