Cincinnati Bell amends consent solicitation for 7¼% 2013 notes

New York, Jan. 26 - Cincinnati Bell Inc. said it has amended its previously announced consent solicitation to the holders of its 7¼% senior notes due 2013.

The company said it has increased the consent fee to $17.50 from $12.50 per $1,000 principal amount.

In addition, the proposed amendment to the restricted payments formula in the indenture has been replaced with an exception specifically limited to repurchases of the company's 16% senior subordinated discount notes due 2009.

In addition, the planned issuance of $350 million of senior unsecured notes will be replaced with a financing of up to $250 million of new senior unsecured notes and at least $100 million of new senior subordinated unsecured notes.

Cincinnati Bell said that based on informal discussions it believes it will obtain consents from holders of a majority of the principal amount of the 7¼% notes.

The solicitation will now expire at 5 p.m. ET on Jan. 28 instead of 5 p.m. ET on Jan. 25. Originally the deadline was Jan. 21.

Cincinnati Bell, a Cincinnati-based provider of local telephone exchange and wireless communications services in Ohio, Kentucky and Indiana, said on Jan. 12 that it had begun soliciting consents to proposed indenture changes from the holders of the 7¼% notes.

The company said the primary purpose of the solicitation would be to facilitate its two-stage refinancing plan, which Cincinnati Bell expects will significantly reduce interest expense and increase cash flow if and when it is fully implemented.

In the first stage, which Cincinnati Bell intends to complete promptly after completion of the consent solicitation, it will refinance its existing senior secured credit facility, using the proceeds from the issuance of about $350 million of new senior unsecured notes - an offering now revised - and with borrowings under a new senior secured revolving credit facility.

In the second stage, the company will redeem all its 16% senior subordinated discount notes due 2009 using a combination of cash from operations and new senior debt, which may include senior secured debt in whole or in part. Cincinnati Bell expects to complete the second stage of the refinancing plan in the first quarter of 2006. The company noted that the 16% notes may be called at a fixed price at any time on or after March 26, 2006.

The company said that its consent solicitation would be conditioned on the receipt of consents from holders of at least a majority of the outstanding principal amount of the 7¼% notes, and other customary conditions.

Banc of America Securities LLC (call 888 292-0070 or call collect at 704 388-4813) and Credit Suisse First Boston LLC (call 800 820-1653 or call collect at 212 538-0652) are the solicitation agents. The information agent is Citigate Financial Intelligence (call 877 746-3583 or call collect at 201 499-3500). The Bank of New York is tabulation agent for the consent solicitation.

© 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.