Mediacom $1.43 billion new financing includes revolver, two term loans

By Wendy Van Sickle

Columbus, Ohio, Nov. 2 – Mediacom Communications Corp. closed on new financing that includes a $375 million revolving credit facility and $250 million term loan, both due November 2022, in addition to a previously reported $800 million term loan M, according to a press release.

Proceeds from the financing transactions were used to repay all outstanding debt under Mediacom Broadband LLC’s former bank credit facility

The $800 million term loan M was priced at Libor plus 200 basis points with a 0.75% Libor floor and came with an original issue discount of 99.875 and 101 soft call protection for six months, as previously reported.

Mediacom founder, chairman and chief executive officer Rocco B. Commisso noted in the release that this tranche was upsized and its pricing tightened from original launch terms.

In conjunction with the financing transactions, Moody’s Investors Service raised its corporate family rating on Mediacom Communications to Ba2 from Ba3, with a positive outlook. Standard & Poor’s affirmed the company’s BB corporate family rating and stable outlook.

“The financial community appreciates the fact that we have the best credit metrics in our 22-year history, fueled by strong operating performance that has allowed our company to repay more than $1 billion of debt since the go-private transaction in March 2011,” Commisso said in the release.

“With among the lowest borrowing costs in the cable and telecom industries, no meaningful debt maturities until 2021, over $600 million of available and unused revolver lines and the recent credit ratings upgrade and positive outlook by Moody’s, Mediacom has never been in a better financial position.”

Mediacom is a Mediacom Park, N.Y.-based cable operator.

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