RCN Corporation's bank debt notched up to the high 70s from the mid-70s last week after an equity infusion from Red Basin Capital. Late last week RCN got $50 million in common stock from Red Basin. RCN also announced it has commenced a "Modified Dutch Auction" tender offer for certain of its debt securities. The Princeton, NJ-based company builds broadband fiber optic networks. A company spokeswoman did not return calls.
RCN has a $3 billion deal that breaks down into three tranches and expires in 2006. J.P. Morgan Chase, Merrill Lynch, Morgan Stanley and Deutsche Bank lead the deal, according to Capital DATA Loanware. Pricing ranges from LIBOR plus 21/2 % to LIBOR plus 31/2 %.