Time Warner Telecom to start roadshow Wednesday for $800 million in two tranches

By Paul A. Harris

St. Louis, Feb. 3 - Time Warner Telecom Inc. will start a roadshow Wednesday for $800 million of new bonds to be sold in two tranches, the sizes of which remain to be determined, a syndicate source said.

Pricing is expected to take place late in the week of Feb. 2 or early in the week of Feb. 9.

The Littleton, Colo.-based provider of managed network solutions is offering seven-year second priority senior secured floating-rate notes (B) that are non-callable for two years.

The company also is offering 10-year senior notes (CCC+) that will be non-callable for five years.

Lehman Brothers and Morgan Stanley will be joint bookrunners on the Rule 144A offering. Bear Stearns & Co. and Wachovia Securities will be co-managers.

The notes in both tranches will be guaranteed on a senior unsecured basis by Time Warner Telecom Inc. and its subsidiaries.

Proceeds will be used to repay bank debt, to redeem the company's existing 10 1/8% notes and for working capital.

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