Cablevision Systems Corp. (CVC:US), the New York-based telecommunications and entertainment provider, is seeking a $1.9 billion term loan to repay debt, according to a person with knowledge of the deal.
Bank of America Corp. is leading the transaction, which will pay interest at 2.75 percentage points more than the London interbank offered rate, with no floor on the lending benchmark, said the person, who asked not to be identified because the transaction is private.
The company may sell the debt at 99.5 cents on the dollar, the person said. The seven-year loan will be used repay some of the Bethpage, New York-based company’s outstanding borrowings.
Its $1.68 billion term slice due in March 2016 was quoted at 100.6 cents on the dollar today, according to prices compiled by Bloomberg. The company has about $4.6 billion outstanding (CVC:US) in loans maturing between 2015 and 2017, Bloomberg data show.
Lenders have until April 12 at noon in New York to submit commitments, the person said.
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