RCN and Grande Communications set roadshow for $400 million eight-year notes backing acquisitions

By Paul A. Harris

Portland, Ore., Jan. 13 – A roadshow starts Tuesday for a $400 million offering of eight-year senior notes backing the acquisitions of RCN Telecom Services LLC and Grande Communications Networks LLC, according to a syndicate source.

The deal, via issuing entities Radiate Holdco, LLC and Radiate Finance, Inc., is set to price on Jan. 20.

UBS Investment Bank is the lead left bookrunner for the Rule 144A and Regulation S for life offering. Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Morgan Stanley & Co. LLC are the joint bookrunners.

The notes come with three years of call protection.

Credit ratings remain to be determined.

Proceeds, together with borrowings under the senior secured credit facilities, will be used to help fund the acquisitions of RCN Telecom Services for $1.6 billion and Grande Communications Networks for $650 million by TPG Capital, Google Capital and Patriot Media Management from Abry Partners.

RCN and Grande will be combined into one broadband services provider.

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