Banks Shop Cable Co. Refi

  • 27 Jul 2003
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J.P. Morgan and Bank of America were set to pitch a $1.125 billion "B" loan for Insight Communications' Insight Midwest arm last Thursday, according to senior v.p. and cfo of the company, Dinni Jain. Insight Midwest currently has a $900 million "B" loan, however the tranche will be refinanced with $225 million more in capacity in order to help refinance all of the indebtedness of Insight's Ohio operating subsidiary, Jain said. The entire credit will now total $1.975 billion. The deal also has a $425 million revolver and a $425 million "A" loan. Insight, the ninth largest cable operator in the U.S., will refinance the Ohio subsidiary's $140 million of 10% senior notes due 2006, $55.9 million of 127/8% senior discount notes due 2008 and a $22.5 million credit facility.

"We're looking to improve the pricing," Jain said, explaining that the "B" loan is targeted to price in the LIBOR plus 21/2% range, while the existing term loan is priced at LIBOR plus 23/4%. The pro rata is set at LIBOR plus 21/4%. J.P. Morgan is new to the lead spot, while B of A also leads the existing deal, Jain noted. TD Securities is an existing co-syndication agent with B of A, however TD is now a co-documentation agent on the deal alongside FleetBoston Financial, he added. Bank of New York is also an agent on the new deal, as it is on the existing loan. Jain said J.P. Morgan is involved in the existing credit, but he did not specify why the lender was selected to lead this time around.

In connection with the refinancing plan, New York-based Insight anticipates the chance to acquire the outstanding equity of Coaxial Communications and satisfy its related put obligation on Coaxial's equity holders for an aggregate of about $30 million. Because of this purchase, Insight will own 800,000 shares of its outstanding common stock. A B of A banker and a J.P. Morgan spokeswoman did not return calls.

  • 27 Jul 2003

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Rank Lead Manager/Arranger Total Volume $m No. of Deals Share % by Volume
1 Citi 7,029 20 10.95
2 Bank of America Merrill Lynch (BAML) 6,703 19 10.45
3 JP Morgan 4,776 10 7.44
4 Credit Suisse 4,718 9 7.35
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3 JPMorgan 55,390.36 159 9.46%
4 Citi 55,051.46 160 9.40%
5 Credit Suisse 43,756.73 120 7.47%