General Electric Capital Corp. signed on for a $50 million piece of Bresnan Communications' $400 million credit last Tuesday, the first commitment following launch. No other commitments could be confirmed by LMW's Thursday's press time. Margot Bright, Bresnan's v.p. of finance and a former director in TD Securities' syndications group, said GE would most likely commit $10 million to the $175 million pro rata and $40 million to the $225 million "B" piece, however that breakdown is not definite. The deal backs Comcast's transference to Bresnan of 317,000 basic cable subscribers in Montana, Wyoming, Colorado and Utah for $675.4 million. J.P. Morgan, TD, Wachovia Securities, Bank of New York and Société Générale have fully underwritten the deal, she added.
The credit's pro rata portion includes a $100 million revolver and a $75 million delayed-draw "A" loan priced at LIBOR plus 31/ 2%. The "B" is priced at LIBOR plus 33/ 4%, but Bright noted that the ratings could effect the "B" spread. She explained that this is Bresnan's first time being rated with its present assets, adding that the company is hoping for a Ba3/BB- rating. Up-front fees were finalized last week, Bright said, stating that an original issue discount would also depend on the ratings. Bresnan's total and senior leverage is 4.6 times. Commitments to the credit are due March 12.
After the transaction, Comcast will receive $525 million in cash plus preferred and common equity interests in Bresnan. In addition to Comcast, Bresnan's equity owners include Providence Equity Partners, Quadrangle Group, TD Capital Communications Partners and Bresnan management. Bankers on the deal either declined comment or did not return calls.