J.P. Morgan and Wachovia Securities are scheduled to launch a repricing of Bresnan Communications' $225 million "B" loan this week. Price talk is around LIBOR plus 31/2%. The "B" loan is currently priced at LIBOR plus 41/4%.
The tranche faced some difficulty last March, when the credit was put in place to back the acquisition of subscribers from Comcast (LMW, 3/17/03). A combination of factors, including a heavier anti-cable sentiment, a weakened bond market and changes to the acquisition structure, prolonged the closing of the credit. The "B" was flexed up from LIBOR plus 33/4% to LIBOR plus 41/4%, while an original issue discount widened from 11/2% to 21/2%. Since then, cable names have made a strong comeback.
The facility also includes a $100 million revolver and $75 million "A" loan priced at LIBOR plus 31/2%. Margot Bright, Bresnan's v.p. of finance, did not return calls.