WideOpenWest debt financing to return July 9 week with changes

By Sara Rosenberg

New York, June 27 - WideOpenWest Finance LLC (WOW!) is working with its lead banks and sponsor to modify its debt financing, and the deal is expected to return in the week of July 9, according to a market source.

On June 13, the company held a bank meeting to launch a $2.12 billion credit facility (B1/B) that consists of a $200 million five-year revolver and a $1.92 billion seven-year first-lien term loan B.

Shortly before launch, price talk on the term loan B came out at Libor plus 500 basis points with a 1.25% Libor floor and an original issue discount of 981/2, and the debt included 101 soft call protection for one year.

Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc., RBC Capital Markets, SunTrust Robinson Humphrey Inc. and Bank of Tokyo-Mitsubishi-UFJ Ltd. are the lead banks on the deal.

Proceeds will be used to help fund the acquisition of Knology Inc. for $19.75 per share in cash. The total transaction value is around $1.5 billion.

Based on the original structure, other funds for the purchase are expected to come from $1.02 billion of senior unsecured notes 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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