WOW! Announces $730 Million Debt Refinancing

Rhea-AI Summary

WOW! Internet, Cable & Phone (NYSE: WOW) has announced a new Credit Facility totaling $730 million in term loan B and $250 million in revolving credit. The facility is expected to close next week and will mature in December 2028, with an interest rate of SOFR plus 3.00%. The funds will be used to refinance existing debts and pay associated fees. The refinancing aims to optimize the company's financial structure amidst the competitive broadband market.

Positive

• Secured a new Credit Facility of $730 million for debt refinancing.
• The new loan will lead to lower interest expenses in the long run.
• Credit Facility has a maturity date of December 2028, ensuring longer-term financing.

Negative

• Dependence on market conditions to close the Debt Refinancing.
• Potential risks associated with forward-looking statements regarding interest cost reductions.

ENGLEWOOD, Colo., Dec. 9, 2021 /PRNewswire/ -- WOW! Internet, Cable & Phone ("WOW!") (NYSE: WOW) announced today that WideOpenWest Finance, LLC, a subsidiary of WOW!, has priced and allocated a new Credit Facility that is anticipated to close next week. At closing, the Credit Facility will consist of a new (i) term loan B in an aggregate principal amount of $730 million and (ii) a $250 million revolving credit commitment. Morgan Stanley Senior Funding, Inc. acted as the lead left arranger and joint Bookrunner together with KeyBanc Capital Markets Inc., BofA Securities, Inc., Credit Suisse Loan Funding LLC, Goldman Sachs Bank USA, Regions Capital Markets, A Division Of Regions Bank, Wells Fargo Securities, LLC  and Manufacturers And Traders Trust Company. The new credit facility will mature in December 2028 and bear interest at a rate equal to SOFR plus 3.00%.

WOW! intends to use the proceeds of the new term B loan, along with cash on hand, to refinance WOW!'s existing term loan B and revolving credit facility and pay certain fees and expenses (collectively, the "Debt Refinancing").  In connection with the Debt Refinancing, WOW! will extinguish the existing credit agreement.

About WOW! Internet, Cable & Phone
WOW! is one of the nation's leading broadband providers, with an efficient, high-performing network that passes 1.9 million residential, business and wholesale consumers. WOW! provides services in 14 markets, primarily in the Midwest and Southeast, including Michigan, Alabama, Tennessee, South Carolina, Florida and Georgia. With an expansive portfolio of advanced services, including high-speed Internet services, cable TV, phone, business data, voice, and cloud services, the company is dedicated to providing outstanding service at affordable prices. WOW! also serves as a leader in exceptional human resources practices, having been recognized eight times by the National Association for Business Resources as a Best & Brightest Company to Work For, winning the award for the last four consecutive years. Visit wowway.com for more information.

Cautionary Statement Regarding Forward-Looking Statements
Certain statements in this press release that are not historical facts contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.  These forward-looking statements represent our goals, beliefs, plans and expectations about our prospects for the future and other future events. Forward-looking statements include all statements that are not historical fact and can be identified by terms such as "may," "intend," "might," "will," "should," "could," "would," "anticipate," "expect," "believe," "estimate," "plan," "project," "predict," "potential," or the negative of these terms. Although these forward-looking statements reflect our good-faith belief and reasonable judgment based on current information, these statements are qualified by important factors, many of which are beyond our control that could cause our actual results to differ materially from those in the forward-looking statements. These factors and other risks that could cause our actual results to differ materially are set forth in the section entitled "Risk Factors" in our Annual Report filed on Form 10-K with the Securities and Exchange Commission ("SEC") and other reports subsequently filed with the SEC and also include the following factors: our ability to close the Debt Refinancing, the timing of such closing, and our ability to reduce our interests costs as contemplated. Given these uncertainties, you should not place undue reliance on any such forward-looking statements. The forward-looking statements included in this presentation are made as of the date hereof or the date specified herein, based on information available to us as of such date. Except as required by law, we assume no obligation to update these forward-looking statements, even if new information becomes available in the future.

Investor Contact:
Andrew Posen
VP, Head of Investor Relations
303-927-4935
andrew.posen@wowinc.com

Media Contact:
Jamie Mayer
wow@barokas.com

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SOURCE WideOpenWest, Inc.

FAQ

What is the new credit facility announced by WOW?

WOW announced a new Credit Facility consisting of a $730 million term loan B and a $250 million revolving credit.

When is the credit facility expected to close?

The credit facility is anticipated to close next week.

What will WOW use the proceeds from the credit facility for?

WOW intends to use the proceeds to refinance existing debts and pay certain fees.

What is the interest rate for WOW's new credit facility?

The new credit facility will bear an interest rate equal to SOFR plus 3.00%.

What is the maturity date of WOW's new term loan?

The term loan is set to mature in December 2028.