|Cequel Communications Closes Refinancing Process|
ST. LOUIS (February 14, 2012) - Cequel Communications Holdings I, LLC ("Cequel," and together with its subsidiaries, the "company") announced today that its subsidiary, Cequel Communications, LLC, has closed on a new $2.7 billion credit facility (the "new credit facility").
"The fact that we were able to complete this refinancing in today's economic environment is a testament to our track record and our ability to generate outstanding operating results," said Jerry Kent, the company's Chairman and Chief Executive Officer. "The new credit facility extends our debt maturity profile and positions us to further execute on our business strategy of providing a superior level of customer care."
The new credit facility consists of a $500 million revolver and a $2.2 billion term loan B. The company intends to use proceeds from the new credit facility to repay in full and terminate its existing $2.525 billion credit facility and to make payments to Cequel Communications Holdings, LLC ("Cequel Holdings"), Cequel`s parent company, of $370 million in March 2012 and up to an additional $70 million in May 2012. Cequel Holdings intends to use such distributions to repay a portion of the capital contributions made by holders of common units of Cequel Holdings and to make certain payments to holders of options and restricted units of Cequel Holdings. Cequel has no current plans for any further distributions and will in no case make any such additional distributions prior to April 1, 2013.
Cequel has posted to its website (suddenlink.com) a Current Report pursuant to the Indenture governing the 8.625% Senior Notes due 2017 and co-issued by Cequel and Cequel Capital Corporation.
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This press release contains "forward-looking statements," within the meaning of the Private Securities Litigation Reform Act of 1995 that involve a number of risks and uncertainties. Forward looking statements, which are based on management's current expectations, are generally identifiable by the use of terms such as "may," "will," "expects," "believes," "intends," "anticipates" and similar expressions. Because these forward-looking statements involve known and unknown risks and uncertainties, there are important factors that could cause actual results, events or developments to differ materially from those expressed or implied by these forwardlooking statements. Readers are cautioned not to place undue reliance on such forward-looking statements. All information is current as of the date this press release is issued, and Cequel undertakes no duty to update this information.
Cequel does business as Suddenlink Communications. Suddenlink (suddenlink.com) is the seventh largest cable operator in the United States, supporting the information, communication and entertainment demands of approximately 1.4 million residential customers and thousands of commercial customers in Arkansas, Louisiana, North Carolina, Oklahoma, Texas, West Virginia and elsewhere. Suddenlink simplifies its customers' lives through one call for support, one connection, and one bill for TV, Internet, phone and other services.
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