RCN Cable lifts pricing on $560 million term B to Libor plus 450 bps

By Sara Rosenberg

New York, May 27 - RCN Cable increased pricing on its $560 million six-year term loan B to Libor plus 450 basis points from Libor plus 400 bps and widened the original issue discount to 98½ from 99, according to a market source.

The term loan B still has a 2% Libor floor, but it now also includes 101 soft call protection for one year.

The $600 million credit facility (B1/B) also includes a $40 million five-year revolver.

Commitments were due from lenders at the end of the day on Thursday, and allocations are expected to go out mid-next week.

SunTrust, GE Capital and Société Générale are the bookrunners on the deal, with SunTrust the left lead and the administrative agent.

Proceeds will be used to help fund the buyout of RCN Corp. by ABRY Partners in a transaction valued at $1.2 billion, including the assumption of debt. RCN stockholders will be receiving $15 per share.

As part of the buyout financing, RCN's fiber business is also getting a credit facility.

The RCN Metro Fiber $265 million credit facility (B2/B) consists of a $240 million six-year term loan priced at Libor plus 450 bps with a 2% Libor floor and an original issue discount of 981/2, and a $25 million five-year revolver.

RCN is a Herndon, Va.-based broadband services provider.

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