Cable One, Inc. (NYSE: CABO) (the “Company” or “Cable ONE”) today announced that it has launched the syndication of a new $350 million senior secured revolving credit facility (the “Revolving Credit Facility”), a new $250 million senior secured term loan A facility (the “Term Loan A”) and a new $450 million senior secured delayed draw term loan A facility (the “Delayed Draw Term Loan A” and, together with the Revolving Credit Facility and the Term Loan A, the “New Credit Facilities”). The New Credit Facilities are expected to mature five years after the closing date of the financing, and the Delayed Draw Term Loan A is expected to be available to be drawn at any time during the first nine months following the closing date of the financing.
The Company intends to apply the proceeds of the New Credit Facilities, together with cash on hand and borrowings under its previously established $325 million senior secured delayed draw term loan “B-3” facility, to refinance its existing senior secured revolving credit facility and senior secured term loan A facility, redeem its outstanding 5.75% senior unsecured notes due 2022 (the “Notes”) on or after June 15, 2019 when the call premium steps down, finance the Company’s pending acquisition of Fidelity Communications Co.’s data, video and voice business and certain related assets (collectively, “Fidelity”) and for other general corporate purposes. This press release is not, and shall not be deemed to be, a notice of optional redemption of the Notes.
The effectiveness of the New Credit Facilities and the terms thereof, including principal amounts and interest rates, are subject to market conditions and other factors outside of the Company’s control.
J.P. Morgan is acting as lead arranger on the transaction.
About Cable ONE
Cable One, Inc. (NYSE: CABO) is a leading broadband communications provider serving more than 800,000 residential and business customers in 21 states. Cable ONE provides consumers with a wide array of connectivity and entertainment services, including high-speed internet and advanced Wi-Fi solutions, cable television and phone service. Cable ONE Business provides scalable and cost-effective products for businesses ranging in size from small to mid-market, in addition to enterprise, wholesale and carrier customers.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
This communication may contain “forward-looking statements” that involve risks and uncertainties. These statements can be identified by the fact that they do not relate strictly to historical or current facts, but rather are based on current expectations, estimates, assumptions and projections about the Company’s industry, business, financial results and financial condition. Forward-looking statements often include words such as “will,” “should,” “anticipates,” “estimates,” “expects,” “projects,” “intends,” “plans,” “believes” and words and terms of similar substance in connection with discussions of future operating or financial performance. As with any projection or forecast, forward-looking statements are inherently susceptible to uncertainty and changes in circumstances. The Company’s actual results may vary materially from those expressed or implied in its forward-looking statements. Accordingly, undue reliance should not be placed on any forward-looking statement made by the Company or on its behalf. Important factors that could cause the Company’s actual results to differ materially from those in its forward-looking statements include government regulation, economic, strategic, political and social conditions and the following factors:
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Trish Niemann
Corporate Communications Director
602-364-6372
Steven Cochran
Chief Financial Officer
602-364-6210