RCN Grande launches $1.33 billion term loan at Libor plus 350 bps

By Sara Rosenberg

New York, Nov. 29 – RCN Grande (Radiate Holdco LLC) launched on Tuesday its $1.33 billion seven-year covenant-light first-lien term loan with price talk of Libor plus 350 basis points with a 0.75% Libor floor and an original issue discount of 99.5, according to a market source.

The term loan has 101 soft call protection for six months.

In addition, the term loan has a ticking fee of half the spread from days 31 to 90 and the full spread thereafter, the source said.

The company’s $1.48 billion credit facility (B1/B) also includes a $150 million revolver.

Credit Suisse Securities (USA) LLC, UBS Investment Bank, Morgan Stanley Senior Funding Inc. and Deutsche Bank Securities Inc. are the lead banks on the deal.

Commitments are due at 5 p.m. ET on Dec. 12.

Proceeds will be used to help fund the acquisitions of RCN Telecom Services LLC for $1.6 billion and Grande Communications Networks LLC for $650 million by TPG Capital, Google Capital and Patriot Media Management from Abry Partners.

RCN and Grande will then be combined into one broadband services provider.

Closing is expected in the first quarter of 2017, subject to customary conditions, including regulatory approvals.

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