Insight Midwest's $1.8 billion term loan "B" broke at 101 in the secondary market last week. Bank of America and JPMorgan lead the loan, which is part of a $2.575 billion credit line that parent Insight Communications will use to refinance debt.
The term loan was originally $1.725 billion, but $75 million was shifted to the term loan from the pro-rata tranche, according to a spokesman. Pricing was also bumped up 25 basis points to LIBOR plus 2 1/4%. He declined to comment on the price increase or the trading of the debt in the secondary market.
One investor said his firm had the sense the credit was moving slowly and that pricing would need to flex to 225 to get done. "I guess 225 was the right price," he said.
The credit facility replaces Midwest's existing revolver, term loan "A" and term loan "C," and redeems all of Insight Midwest's 10 1/2% '10 senior notes and a portion of its 9 3/4% '09 notes (CIN, 9/25). Moody's Investors Service assigned a Ba3 and a LGD3 loss given default assessment to the loan. Insight Midwest is a joint venture between Insight Communications and AT&T Broadband.