Mediacom upsizes by $50 million, firms original issue discount at 99½

By Sara Rosenberg

New York, April 23 - Mediacom increased the amount of term loans (Ba3/BB-) it is getting to $850 million from $800 million and finalized the original issue discount on that debt at 991/2, the tight end of initial talk of 99 to 991/2, according to a market source.

In addition, 101 soft call protection for one year was added to the term loans, the source said.

The debt consists of an unchanged $250 million term loan E at Mediacom LLC and a $600 million term loan F, up from $550 million, at Mediacom Broadband LLC.

Pricing on the term loans is Libor plus 300 basis points, in line with original talk, and there is still a 1.5% Libor floor.

Mediacom LLC is also getting a $200 million revolver due in 2014 that is basically just an extension of its existing revolver due in 2011. Pricing on the extended revolver is based on a leverage grid.

JPMorgan and Bank of America are the lead banks on the deal, with JPMorgan the left lead on Mediacom LLC and Bank of America the left lead on Mediacom Broadband.

Proceeds from the new term loans will be used to refinance existing debt and for general corporate purposes. As a result of the upsizing, more existing revolver borrowings will be paid down, the source added.

Mediacom LLC and Mediacom Broadband are wholly owned subsidiaries of Mediacom Communications Corp., a Middletown, N.Y.-based developer of cable systems to provide entertainment, information and telecommunications services.

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