RCN Grande increases term loan size, flexes to Libor plus 300 bps

By Sara Rosenberg

New York, Dec. 8 – RCN Grande (Radiate Holdco LLC) upsized its seven-year covenant-light first-lien term loan to $1,425,000,000 from $1.33 billion and reduced pricing to Libor plus 300 basis points from Libor plus 350 bps, according to a market source.

The term loan still has a 0.75% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

As before, the term loan has a ticking fee of half the spread from days 31 to 90 and the full spread thereafter.

The company’s now $1,575,000,000 credit facility (B1/B), up from $1.48 billion, 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.

Recommitments were scheduled to be due at 3 p.m. ET on Thursday, the source continued.

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.

Due to the term loan upsizing, the company’s proposed bond offering was downsized to $400 million from $495 million, the source added.

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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