B of A And Wachovia Lead Bresnan

Bank of America and Wachovia Securities are in the market with a $500 million credit for Bresnan Communications.

  • 31 Mar 2006
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Bank of America and Wachovia Securities are in the market with a $500 million credit for Bresnan Communications. The deal, which was scheduled to launch last Friday, includes a six-year, $150 million revolving credit facility; a six-year, $75 million "A" term loan; a seven-year, $275 million term loan "B" and a six-and-a-half-year, $100 million second-lien loan. Pricing on the first-lien tranches is LIBOR plus 2 1/4% while the second-lien is priced at LIBOR plus 5%. GE Capital Markets, Société Générale and Toronto Dominion are also involved in the credit.

The deal replaces an earlier $400 million facility put in place in March of 2003. That credit, which was led by JPMorgan and Wachovia, consisted of a $100 million revolver, a $75 million term loan "A" and a $225 million "B" term loan. The initial deal was entered into to fund the transfer of Comcast cable subscribers over to Bresnan's service throughout 197 communities in which Bresnan operates.

"Last time they refinanced they came back about a year later and got better pricing on the deal, so there is the possibility that we could see that here as well," one investor pondered. "On the business side, they serve a market that doesn't have a lot of people like the West Coast or the Northeast, but they are a solid company for what they are," he remarked.

A second investor noted that Bresnan's lack of name recognition has not necessarily hurt its business. "Not many people have heard of Bresnan as a cable provider. They know the big names like Cablevision and Time Warner. Despite a limited subscriber base [nationally] they have been a solid business in those areas that they serve," he added.

Based in Purchase, N.Y., Bresnan Communications is a broadband telecommunications provider that serves over 300,000 customers in smaller markets such as Colorado, Montana, Wyoming and Utah. A spokesman at Bresnan declined to comment as did bankers at B of A and GE. Calls to bankers at Wachovia, Société Générale and Toronto Dominion were not returned.

  • 31 Mar 2006

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1 Bank of America Merrill Lynch (BAML) 7,026 25 11.95
2 Citi 6,449 21 10.96
3 BNP Paribas 5,093 18 8.66
4 Barclays 4,040 11 6.87
5 Lloyds Bank 3,615 14 6.15

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