Knology successfully amended its existing first-lien credit facility.
The operator said the amendment will reduce the interest rate on the first-lien term loan to London Interbank Offered Rate plus 2.5% from LIBOR plus 5.5%.
Knology said it currently has $173.2 million outstanding under the first-lien term facility, and the decrease in the interest rate will reduce its annual interest expense by approximately $5.2 million.
“This amendment to our first-lien facility is important for Knology as it reflects the continuing and growing confidence the debt-capital markets have in our company and our business plan,” CEO Rodger L. Johnson said in a prepared statement. “The transaction adds value to our shareholders as the reduced interest expense transfers debt cost of capital to increased free cash flow for the business.”