Bloomberg Anywhere Remote Login Bloomberg Terminal Demo Request


Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000


Industry Products

Media Services

Follow Us

Bloomberg Customers

Bloomberg News

Cequel Communications Seeks $2.7 Billion in Refinancing Loans

February 01, 2012

Jan. 31 (Bloomberg) -- Cequel Communications LLC, the cable-television and Internet-services provider that does business as Suddenlink Communications, is seeking $2.7 billion in loans to refinance borrowings.

The new debt includes a $2.2 billion term loan B and a $500 million revolving line of credit, the company said today in a statement.

The term loan is due in seven years and will pay 3.25 percentage points more than the London interbank offered rate, with a 1 percent minimum on the benchmark, according to a person with knowledge of the deal. The five-year credit line will pay 2.5 percentage points more than Libor, said the person, who declined to be identified because the terms are private.

Cequel, based in St. Louis, is proposing to sell the term loan at 99 cents on the dollar, the person said, reducing proceeds for the borrower and boosting the yield for investors.

Credit Suisse AG, Goldman Sachs Group Inc., JPMorgan Chase & Co., Bank of America Corp. and Royal Bank of Canada are arranging the financing and will meet with lenders tomorrow, according to the person.

Proceeds will be used to refinance $2.53 billion in loans and to pay a $370 million dividend to parent company Cequel Communications Holdings I LLC in March and as much as $70 million more in May, according to the statement. As part of the agreement, Cequel won’t make any further payouts before April 1, 2013.

Mary Meduski, chief financial officer, declined to comment beyond the statement.

In May 2006, Cequel obtained a $2.33 billion term loan and a $200 million revolving line of credit, according to data compiled by Bloomberg.

A term loan B is sold mainly to non-bank lenders such as collateralized loan obligations, bank loan mutual funds and hedge funds. In a revolving credit facility, money can be borrowed again once it’s repaid; in a term loan, it can’t.

--Editors: Chapin Wright, Dennis Fitzgerald

3149616Z US <EQUITY> CN

To contact the reporter on this story: Krista Giovacco in New York at

To contact the editor responsible for this story: Faris Khan at

blog comments powered by Disqus