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WideOpenWest shops $1.02 billion bridge loan at Libor plus 750 bps
By Sara Rosenberg
New York, May 14 - WideOpenWest Finance LLC (WOW!) is currently marketing a $1.02 billion senior unsecured bridge loan that is priced at Libor plus 750 basis points with a 1.25% Libor floor and is being offered at par, according to a market source.
Pricing on the loan will step up by 50 bps every 90 days after the closing date, subject to a cap of 11½%, the source said.
The commitment fee is 75 bps, or 100 bps for allocations over $100 million.
There is a funding fee of 1½% total earned in 25% increments every 90 days and a conversion fee of 2½% total earned in 25% increments every 90 days, the source added.
Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc., RBC Capital Markets, SunTrust Robinson Humphrey Inc. and the Bank of Tokyo-Mitsubishi-UFJ Ltd. are the lead banks on the deal.
Commitments are due by noon ET on May 23.
The loan backs the company's plan to issue $1.02 billion of senior unsecured notes for its purchase of Knology Inc. for $19.75 per share in cash. The total transaction value is around $1.5 billion.
Other funds for the acquisition are expected to come from a $2.12 billion credit facility, consisting of $200 million revolver and a $1.92 billion term loan, and around $200 million of equity.
Closing is subject to stockholder approval, regulatory approvals and customary conditions.
WideOpenWest, an Avista Capital Partners portfolio company, is a Denver-based provider of residential and commercial high-speed internet, cable television and telephone services. Knology is a West Point, Ga.-based provider of interactive communications and entertainment services.
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