Suddenlink Closes Bond Offering

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Cequel Communications, parent of Suddenlink Communications, said Thursday that it has closed a $625 million debt offering, bringing the total raised by the nation's seventh-largest MSO in the past 14 months to more than $1.8 billion.
Cequel Communications Holdings and Cequel Capital Corp. completed the sale of $625 million in 8.625% senior notes due 2017. The offering will form a part of the same series as about $1.2 billion of 8.625% senior notes due in 2017 that were issued on Nov. 4 and May 4, the company said.
Cequel will use the proceeds from the latest offering to fund its earlier announced purchase of NPG Cable, the Missouri-based MSO with about 83,000 subscribers; repay all of the original capital contributions made by holders of preferred interests of Cequel's parent; repay a portion of the capital contributions made by holders of common interests of Cequel's parent; make certain payments to holders of options in and restricted common units of Cequel's parent; and pay related costs, fees and expenses.
The proceeds of the earlier offerings were used to facilitate Suddenlink's $233 million rebuild program "Project Imagine" through 2012, repay a portion of its debt and for working capital and corporate purposes.
"I consider the fact that we've successfully gone to the capital markets for more than $1.8 billion in 14 months to be quite an achievement, especially given the larger economic conditions," Suddenlink chairman and CEO Jerry Kent said in a statement. "I further believe this achievement is a testament to the value of our investments in customer service and the overall soundness of our business strategy."

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