Suddenlink Prices $750M Notes Offering

Will Use Proceeds to Refinance Some Debt

Suddenlink Communications said Monday that it has priced a $750 million of 5.125% senior notes due 2021 to replace earlier issued debt.

According to Suddenlink, the new debt will be used to retire the remaining $712.6 million of outstanding 8.625% Senior Notes due 2017 and pay related fees and expenses.

The debt issuance comes on the heels of a strong first quarter for Suddenlink. On May 7 the St. Louis-based MSO reported first quarter revenue of $539 million (up 6.4%) and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $208.3 million, a 9.4% increase from the prior year. Free cash flow more than tripled to $38.1 million from $11.1 million in the same period in 2012.

Suddenlink added about 700 basic video customers, 24,100 high-speed Internet subscribers and 5,800 telephone customers in the period.

“Our results continue to be among the best in the industry, with pro forma, year-over-year revenue growth of 6.4 percent and EBITDA growth before non-recurring expenses of 9.4 percent," said Suddenlink Chairman and CEO Jerry Kent in a statement. "Clearly, we're benefiting from the steps we've taken to build out our world-class infrastructure and national backbone, augmented by Project Imagine and our unrelenting focus on providing a superior level of customer care."