RCN $200 million notes talked at 8¼% to 8½%; pricing seen Monday

By Paul Deckelman

New York, Aug. 1 - Price talk emerged on Thursday for the $200 million offering of seven-year senior notes that RCN Telecom Services, LLC and RCN Capital Corp. are marketing to investors, a high-yield syndicate source said.

The talk calls for a yield of 8¼% to 8½%.

Books on the deal are scheduled to close on Monday at 10 a.m. ET, with pricing expected thereafter.

Credit Suisse Securities (USA) LLC and SunTrust Robinson Humphrey Inc. are the joint bookrunners for the Rule 144A and Regulation S for life notes offering.

The notes become callable in three years at par plus 75% of the coupon and feature a three-year 40% equity clawback and a 101% poison put.

The cable company plans to use the proceeds to fund a shareholder dividend.

RCN operates in Boston, Chicago, Washington, D.C., Lehigh Valley, Pa., New York City and Philadelphia.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.