(Bloomberg) -- Stonepeak Partners LP-backed Radiate Holdco and its lenders have hit an impasse over how to tackle the cable provider’s liquidity needs, according to people familiar with the situation.
Some creditors had entered into non-disclosure agreements with the company, also known as Astound Broadband, to craft a debt restructuring in which Stonepeak would write an equity check to help shore up cash reserves, said the people, who asked not to be identified discussing a private matter. The discussions also touched on below-par debt exchanges.
However, Stonepeak and its creditors could not reach a deal, putting an end to confidential negotiations in mid-August, the people said. The crux of the disagreements centered on the size of Stonepeak’s check, which entity would hold the new money investment, and the magnitude of the haircut under a distressed debt exchange, they said.
The company is working with PJT Partners and Kirkland & Ellis, while creditors have engaged Evercore Partners and Gibson Dunn & Crutcher.
Representatives with Stonepeak and PJT declined to comment, while messages left with the company, Kirkland, Evercore and Gibson were not returned.
During an earnings call Wednesday, Radiate said Stonepeak is working on capital structure solutions but refrained from taking questions from investors, said other people.
Radiate ended the quarter with around $25 million of availability on its revolver, the same people added.
Radiate has more than $5 billion of debt, split between secured and unsecured debt. Its roughly $3.3 billion term loan maturing in 2026 is quoted at around 81.3 cents on the dollar, according to data compiled by Bloomberg. Its $900 million 4.5% secured bonds due in 2026 traded at 79 cents Wednesday, while its $1 billion 6.5% unsecured notes maturing in 2028 changed hands at nearly 52 cents, according to pricing source Trace.
Moody’s Ratings lowered its ratings on Radiate to Caa2 from Caa1 in March, citing weak liquidity, a largely drawn-down revolver and negative cash burn trajectory.
Stonepeak acquired the cable provider from TPG Capital and Patriot Media Management for $8.1 billion in 2021, according to a press release.
©2024 Bloomberg L.P.
