Insight Midwest $1.1 billion term loan C to launch Wednesday

By Sara Rosenberg

New York, June 27 - Insight Midwest, a subsidiary of Insight Communications Co. Inc., is scheduled to hold a conference call on Wednesday morning to launch its proposed $1.1 billion term loan C that is essentially being used to reprice and replace its existing $1.1 billion term loan B, according to a market source.

The term loan C will be priced with an interest rate of Libor plus 200 basis points, down from the current term loan B pricing of Libor plus 275 bps, the source explained.

In addition to the repricing, the company is looking to amend its existing credit facility to provide some covenant room in terms of the maximum total leverage ratio, the source added.

The Bank of New York and Bank of America are co-lead arrangers and bookrunners on the deal, with Bank of New York also acting as administrative agent and Bank of America acting as syndication agent. JPMorgan is a bookrunner on the deal as well.

"This market opportunity would enable us to reduce our overall interest costs as well as ensure adequate liquidity under Insight Midwest's financial covenants," said John Abbot, senior vice president and chief financial officer, in a company news release.

"The interest savings going forward would further enhance our strong free cash flow position. And importantly, the covenant adjustment would provide ample room for compliance under our financial covenants for the near future."

Insight Communications is a New York-based cable television system operator.

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