WideOpenWest announced another move today to ease its debt load and free up cash.
The Englewood, Colorado-based cable operator took a $2.28 billion term B loan, which it said will be combined with revolving credit and cash on hand to refinance existing loan debt. Wow said it will save $60 million a year in interest based on the move.
WOW! incurred significant debt in 2012 when it paid $750 million to acquire broadband services company Knology.
The company endured several straight years of minimal cash flow, bottoming out in late-2014 with a 9% reduction in its workforce.
Last month, the company raised $309 million in an initial public offering—well below the $400 million it had hoped to generate, but still enough to improve its debt situation, said company CEO Steven Cochran.
“We were disappointed [the IPO] didn’t price higher than it did,” Cochran conceded. “But the most important thing was to get the deal done and improve our balance sheet.”
Wow said its new term B loans are expected to mature in August 2023, and to bear interest at a rate equal to LIBOR + 325bps.