Mediacom units accepts $23.3 million more 8½% notes in tender offer

By Toni Weeks

San Diego, Sept. 12 - Mediacom Communications Corp. subsidiaries Mediacom Broadband LLC and Mediacom Broadband Corp. reported that they accepted an additional $22.3 million of 8½% senior notes due 2015 tendered before the early tender date, 5 p.m. ET on Aug. 27, and an additional $1 million of the notes tendered after the early deadline but before the expiration date.

As previously reported, the companies received tenders for $73.8 million principal amount, or 14.8%, of their 8½% senior notes due 2015 as of the early tender date and accepted for purchase 70%, or $51.5 million, of the notes.

At the time, the companies said that if the tender offer were oversubscribed, they would accept for purchase the amount of notes equal to the total amount of notes tendered multiplied by a final proration percentage, less the notes accepted on Aug. 27. The companies also said they would accept for purchase the remaining early tendered notes not accepted on Aug. 27 after application of the proration procedure.

Following proration, the companies accepted the remaining $22.3 million of notes tendered before the early tender date. In addition, they also accepted for purchase $1 million of the notes tendered after the early deadline but before 8 a.m. ET on Sept. 12, the expiration date.

In the tender offer, which began on Aug. 14, the companies offered to purchase up to $350 million principal amount, or 70%, of the $500 million outstanding notes. This cap was increased from $300 million on Aug. 20.

Holders received $1,022.50 per $1,000 principal amount of notes. This included an early tender payment of $20.00 for each note tendered by the early tender date.

Holders will also receive accrued interest up to but excluding the applicable settlement date.

In a separate news release, the companies said they plan to redeem the notes not purchased in the tender offer on or after Oct. 15. They will fund the tender offer and the redemption with the proceeds of their $300 million offering of 6 3/8% senior notes due 2023, which priced Aug. 14 and settled on Aug. 28.

The dealer managers were Wells Fargo Securities LLC (866 309-6316 or 704 715-8341) and SunTrust Robinson Humphrey Inc. (404 926-5051). The information agent and depositary was i-Deal LLC (888 593-9546 or, for banks and brokers, 212 849-5000).

Mediacom is a cable television company based in Middletown, N.Y.

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