RCN Grande talks $300 million five-year notes to yield 6 7/8%-7 1/8%; pricing Wednesday

By Paul A. Harris

Portland, Ore., Jan. 17 – RCN Grande talked its $300 million offering of five-year senior notes (CCC+) to yield 6 7/8% to 7 1/8%, according to a syndicate source.

Books close at 3 p.m. ET on Wednesday, and the deal is set to price thereafter.

Official talk comes tight to initial price talk of 7% to 7¼%, a market source said.

Credit Suisse Securities (USA) LLC is the lead bookrunner. UBS Investment Bank, Morgan Stanley & Co. LLC, Nomura Securities, Goldman Sachs & Co. LLC and BofA Merrill Lynch are the joint bookrunners.

The Rule 144A and Regulation S for life notes become callable after two years at par plus 50% of the coupon and feature a two-year 40% equity clawback at par plus the coupon and a 101% poison put.

The issuing entities are special purpose vehicles Radiate HoldCo, LLC and Radiate Finance, Inc.

The Princeton, N.J.-based cable, internet and telecom services provider plans to use the proceeds to fund its acquisition of WaveDivision Holdings.

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