Mediacom Communications Corp. (MCCC) has completed a $250 million senior secured term loan and a $225 million revolving credit facility, pursuant to a new amended and restated bank credit agreement between the operating subsidiaries of Mediacom LLC and the lenders thereto. Mediacom LLC is a wholly-owned subsidiary of MCCC.
The new term loan has a final maturity of 3/31/18, and the new revolving credit facility expires 2/5/19. Proceeds from the financing transactions were principally used to repay certain existing term loans scheduled to mature on 1/31/15.
In conjunction with the financing transactions, Standard & Poor’s Rating Services raised its corporate credit rating on MCCC to BB- from B+, with a stable outlook, and Moody’s Investors Service affirmed MCCC’s B1 corporate family rating and revised its outlook to positive from stable.
“We are pleased with the outcome of these financing transactions, which extend maturities of certain debt arrangements,” said Mark E. Stephan, MCCC’s EVP/CFO. “We enjoy today the best credit metrics in the company’s history, given our success with debt reduction and the meaningful deleveraging of our balance sheet since Mediacom completed its go-private transaction in March 2011. The ratings upgrade by Standard and Poor’s and the revised positive outlook by Moody’s underscore our strengthening financial position.”
Mediacom is the nation’s eighth largest cable television company and one of the leading cable operators focused on serving the smaller cities in the US, with a significant customer concentration in the Midwest and Southeast.