RCN Cable to launch $848 million credit facility on Wednesday

By Sara Rosenberg

New York, May 28 - RCN Cable (RCN Services Telecom LLC) is scheduled to hold a call at 11 a.m. ET on Wednesday to launch an $848 million credit facility, according to a market source.

Credit Suisse Securities (USA) LLC and SunTrust Robinson Humphrey Inc. are the lead banks on the deal.

The facility consists of a $40 million revolver and an $808 million first-lien term loan due March 2020, the source said.

Price talk on the term loan is Libor plus 325 basis points to 350 bps with a 1% Libor floor and a par offer price, the source continued.

The loan has 101 repricing protection for six months.

Covenants include a maximum senior secured leverage ratio.

Proceeds will be used to reprice an existing term loan from Libor plus 400 bps with a 1.25% Libor floor and to amend the credit agreement to permit the incurrence of unsecured debt.

Existing term loan lenders will get paid out at 101 with this transaction, the source added.

Commitments are due on June 5.

RCN Cable is a cable provider.

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