RCN Cable plans launch of $672 million credit facility for Thursday

By Sara Rosenberg

New York, Aug. 8 - RCN Cable is scheduled to hold a bank meeting at 10 a.m. ET on Thursday to launch a roughly $672 million credit facility, according to a market source.

SunTrust Robinson Humphrey Inc., GE Capital Markets and TD Securities (USA) LLC are the lead banks on the deal.

The facility consists of a $40 million three-year revolver, an about $47 million four-year term loan A and a $585 million four-year term loan B, the source said.

Price talk on the revolver and term loan A is Libor plus 400 basis points with no Libor floor, and talk on the term loan B is Libor plus 425 bps with a 1.25% Libor floor, the source said.

Unofficially, the original issue discount on the term loan B is being guided at 991/2, the source added.

Also, the term loan B has 101 soft call protection for one year.

Proceeds will be used to refinance existing credit facility borrowings.

Commitments are due on Aug. 16.

RCN is a broadband services provider.

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