MEDIACOM PARK, N.Y.--(BUSINESS WIRE)--Mediacom Communications Corporation (“MCCC”) announced today the completion of $1,050 million of new senior secured term loans, of which $250 million matures in November 2022 and $800 million in January 2025, and a $375 million revolving credit facility expiring in November 2022 (together with the senior secured term loans, the “financing transactions”). Proceeds from the financing transactions were used to repay all outstanding indebtedness under Mediacom Broadband LLC’s former bank credit facility, and such transactions were completed pursuant to a new amended and restated bank credit agreement.
In conjunction with the financing transactions, Moody’s Investors Service raised its corporate family rating on MCCC to Ba2 from Ba3, with a positive outlook. Standard & Poor’s Rating Services affirmed MCCC’s BB corporate family rating and stable outlook.
“We are very pleased with the $1.425 billion of financing transactions completed today,” stated Rocco B. Commisso, Mediacom’s founder, Chairman and Chief Executive Officer. “Mediacom’s stellar reputation in the debt markets drove robust investor demand, allowing us to upsize the institutional loan tranche and tighten pricing from original launch terms. The financial community appreciates the fact that we have the best credit metrics in our 22-year history, fueled by strong operating performance that has allowed our company to repay more than $1 billion of debt since the Go-Private Transaction in March 2011. With among the lowest borrowing costs in the cable and telecom industries, no meaningful debt maturities until 2021, over $600 million of available and unused revolver lines and the recent credit ratings upgrade and positive outlook by Moody’s, Mediacom has never been in a better financial position.”
“I wish to thank Mediacom’s operations team for continuing to deliver excellent results, highlighted by 83 consecutive fiscal quarters of year-over-year revenue growth, and our finance group for once again executing an exceptional financing transaction,” continued Mr. Commisso. “I would also like to extend my sincere appreciation to our long-term debt investors and key relationship banks, many of which have been with us since the early days of Mediacom. Without their support and trust, we would not be in the position we enjoy today. I am proud to have returned the favor with an unblemished track record over my 31 years of raising capital in the debt markets which, with the financing transactions completed today, exceed in the aggregate $25 billion.”
Credit ratings are opinions of a rated entity’s ability to meet its ongoing obligations, are not recommendations to buy, sell or hold securities, and are subject to revision or withdrawal at any time by the assigning rating agency. Each agency’s rating should be evaluated independently of any other agency’s rating.
About Mediacom Communications
Mediacom Communications Corporation is the 5th largest cable operator in the U.S. serving almost 1.4 million customers in smaller markets primarily in the Midwest and Southeast. Mediacom offers a wide array of information, communications and entertainment services to households and businesses, including video, high-speed data, phone, and home security and automation. Through Mediacom Business, the company provides innovative broadband solutions to commercial and public sector customers of all sizes, and sells advertising and production services under the OnMedia brand. More information about Mediacom is available at www.mediacomcable.com.
Forward Looking Statements
This press release contains forward looking statements that involve risks and uncertainties. Factors that could cause actual results to differ materially from those expressed or implied by the forward-looking statements in this press release include: adverse conditions in the capital markets, our inability to secure financing on acceptable terms and the other risks and uncertainties discussed in our Annual Report on Form 10-K for the year ended December 31, 2016.