Cogeco Cable issues notes totaling $175 million; Corolla Trust places $299.2 million notes

By Lisa Kerner

Charlotte, N.C., Aug. 28 – Cogeco Cable Inc. placed $25 million of 4.14% series A senior secured notes due Sept. 1, 2024 and $150 million of 4.29% series B senior secured notes due Sept. 1, 2026.

Proceeds will be used to repay a portion of the amount outstanding under the company's term revolving facility, according to a company news release.

Cogeco is a Montreal-based cable operator.

Ambac Financial Group, Inc. affiliate Corolla Trust placed $299.2 million of senior secured notes due 2039 in a private placement.

The notes pay interest at 5.1% per year compounded annually on June 7, according to a news release.

Morgan Stanley was the placement agent.

Corolla used the proceeds of the notes to purchase $350 million of junior surplus notes from the segregated account of Ambac Assurance Corp. for $231.9 million. The trust also issued a $74.8 million face amount subordinated owner trust certificate to Ambac.

New York-based Ambac Financial Group provides financial guarantee insurance for public and structured finance obligations.

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