RCN carves out $50 million term A from $125 million incremental debt

By Sara Rosenberg

New York, March 13 - RCN downsized its add-on term loan B due August 2016 to $75 million from $125 million and added a $50 million term loan A to the capital structure, according to a market source.

Pricing on the term loan A is Libor plus 400 basis points with no Libor floor, the source said.

The term loan B got done at initial terms of Libor plus 450 bps with a 2% Libor floor and an original issue discount of 99.

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

Proceeds will be used to fund a dividend.

Total and senior leverage will be 4.2 times versus current leverage of 3.4 times.

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.