RCN Telecom to sell $100 million tap of 8½% notes due 2020 on Monday

By Paul A. Harris

Portland, Ore., Sept. 15 – RCN Telecom Services, LLC and RCN Capital Corp. plan to price a $100 million tack-on to their 8½% senior notes due Aug. 15, 2020 on Monday following a mid-morning conference call, according to an informed source.

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

The notes become callable on Aug. 15, 2016 at 106.375 and feature a 40% equity clawback at 108.5 until Aug. 15, 2016 and a 101% poison put.

Proceeds will be used to fund a return of capital to shareholders.

The prospective issuer is a cable company operating in Boston, Chicago, Washington, D.C., Lehigh Valley, Pa., New York City and Philadelphia.

The original $200 million issue priced at par in August 2013.

The tack-on notes will be immediately fungible with the original notes.

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