Suddenlink Refinances, Grows Revenue 6% for Q4

By Mike Farrell -- Multichannel News, 2/6/2012 12:01:00 AM

Suddenlink Communications, the No. 7 U.S. MSO, issued preliminary fourth-quarter results last week in conjunction with an announcement that its parent company will refinance about $2.5 billion in debt.

According to a company statement, fourthquarter 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%.

St. Louis-based Suddenlink expects to lose about 16,100 basic-video customers in the fourth quarter and 45,500 for the 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 phone customers are expected to increase by 12,500 in Q4 and by 60,900 for the year.

Cequel Communications LLC said Jan. 31 it would begin the process of refi nancing 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 said it would use the distributions to repay a portion of the capital contributions made by holders of common units of Cequel Holdings and to make certain payments to holders of options and restricted units of Cequel Holdings.