The $275 million "B" loan backing Atlantic Broadband's $765 million acquisition of cable systems from Charter Communications is oversubscribed. Atlantic Broadband is a company of private equity firm ABRY Partners. Merrill Lynch is the sole lead and co-syndication agent on the deal, while Société Générale holds the administrative agent role and GE Capital is co-syndication agent. It could not be determined whether pricing would be cut or if the size of the deal might be increased. Officials at Merrill did not return calls.
Pricing on the tranche is LIBOR plus 31Ž2%. The facility also comprises a $30 million "A" loan and $90 million revolver. Both the "A" loan and revolver are priced at LIBOR plus 31Ž4%. The revolver matures in 2010, while both term loans come due in 2011. After the acquisition, debt will initially be more than seven times EBITDA. In addition to ABRY, equity financing was provided by ABRY's long-term cable investment partner Oak Hill Capital Partners and other minority investors. Merrill reportedly provided an undisclosed amount of debt.