RCN Cable increases term loan B size to $808 million on strong demand

By Sara Rosenberg

New York, Feb. 26 - RCN Cable upsized its term loan B (B1/B) to $808 million from $775 million as the deal was well oversubscribed, according to a market source.

Pricing on the loan was left at Libor plus 400 basis points with a 1.25% Libor floor and an original issue discount of 991/2, and there is still 101 soft call protection for six months.

Recommitments are due at 2 p.m. ET on Wednesday, the source said.

Allocations are expected to go out on Thursday.

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

Proceeds will be used to refinance a roughly $555 million term loan B that is priced at Libor plus 400 bps with a 1.25% Libor floor and pay a dividend.

The extra $33 million of proceeds being raised from the upsizing will be used to increase the dividend amount.

The existing term loan B has 101 repricing protection, but because pricing is not changing, lenders will get paid out at par rather than at 101.

Leverage is 4.9 times, up from 4.7 times prior to the upsizing, the source added.

RCN Cable is a broadband services provider.

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