Sept. 29 (Bloomberg) -- Knology Inc., the digital cable television and phone service provider that agreed to buy Sunflower Broadband, cut pricing on a $570 million term loan to fund the acquisition and refinance debt, according to a person familiar with the transaction.
Credit Suisse Group AG and SunTrust Banks Inc. are arranging the debt, which will pay 4 percentage points more than the London interbank offered rate, 0.5 percentage point less than initially offered, said the person who declined to be identified because the terms are private. Libor, the rate banks charge to lend to each other, will have a 1.5 percent floor, compared with 1.75 percent.Knology tightened the price at which it may sell the loan to 99 cents on the dollar from 98.5 cents, said the person, reducing proceeds for the company and boosting the yield for investors. Lenders must let the banks know by 5 p.m. New York time if they will participate in the deal.To contact the reporter on this story: Krista Giovacco in New York at kgiovacco1@bloomberg.net
To contact the editor responsible for this story: Chapin Wright at cwright4@bloomberg.net
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