Cable One readies launch of $350 million term loan B for Monday

By Sara Rosenberg

New York, March 31 – Cable One Inc. will hold a lender call on Monday to launch its $350 million incremental seven-year term loan B (BBB-), according to a market source.

J.P. Morgan Securities LLC is the lead bank on the debt.

The term loan B is talked at Libor plus 250 basis points to 275 bps with a 0% Libor floor and an original issue discount of 99.5, the source said.

Based on filings with the Securities and Exchange Commission, the company also plans on getting a $300 million incremental five-year term loan A (BBB-)

Proceeds will be used to help fund the acquisition of NewWave Communications for $735 million in cash from GTCR LLC.

Other funds for the transaction will come from $105 million in cash on hand.

Pro forma net leverage is 2.9 times before cost synergies and 2.7 times after cost synergies.

Closing is expected in the second quarter, subject to customary regulatory conditions.

Cable One is a Phoenix-based cable company. NewWave is a Sikeston, Mo.-based cable operator.

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