Cable Operators

Suddenlink Refinances, Grows Revenue 6% for Q4

2/06/2012 12:01 AM Eastern

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.