Suddenlink Issues Preliminary Q4 Results
Parent Will Refinance Bank Debt
Mike Farrell -- Multichannel News, 1/31/2012 12:05:56 PM
Suddenlink Communications, the seventh largest MSO in the country, issued preliminary fourth quarter results Tuesday in conjunction with an announcement that its parent company will refinance about $2.5 billion in debt.
According to a company statement, fourth quarter pro forma revenue is expected to rise 5.8% to $489.7 million and should increase 7.1% for the full year to $1.9 billion. Pro forma adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) is expected to range between $188 million and $191 million for the fourth quarter (an increase of 8.8% to 10.5%) while full-year pro forma adjusted EBITDA should range between $715 million and $718 million, up 8.6% to 9.1%.
Suddenlink expects to lose about 16,100 basic video customers in the fourth quarter and 45.500 for the full year. Digital cable customers should be up by 13,700 in the period (70,800 for the year); and residential high-speed Internet subscribers are expected to rise by 14,200 in the quarter (65,100 for the year). Residential telephone customers are expected to increase by 12,500 in the quarter and by 60,900 for the full year.
Cequel Communications LLC, a subsidiary of Suddenlink parent Cequel Communications Holdings, said Tuesday it will begin the process of refinancing about $2.5 billion in bank debt with a new $2.7 billion credit facility.
The new credit facility is expected to include a $500 million revolver and a $2.2 billion term loan B. Cequel Communications LLC said it will use the proceeds from the new facility to repay in full its existing credit facility as well as distribute $320 million to parent Cequel Communications Holdings in March 2012 and up to an additional $70 million in May 2012.
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