(Bloomberg) -- WideOpenWest Inc. is nearing a deal with lenders to raise around $200 million of cash and revamp its debt profile, according to people familiar with the situation.
As part of the proposal, which is being finalized and may change, lenders would provide the cable operator with a loan that ranks above existing debt in order of repayment priorities, said the people, who asked not to be identified as they’re not authorized to speak publicly. The company also plans to launch a debt exchange, they added.
Bloomberg reported last month that Southeast-focused WideOpenWest was talking with some lenders and working with PJT Partners Inc. Both declined to comment Friday, as did FTI Consulting Inc., one of the lenders’ advisers. Messages left with Gibson Dunn & Crutcher, which is also working with the lenders, weren’t returned.
WideOpenWest had around $955 million of long-term debt as of June 30, including a nearly $710 million first-lien term loan maturing in 2028. It’s quoted at about 84 cents on the dollar, just above March’s all-time low and down from 91 cents in late June, according to data compiled by Bloomberg.
The cable operator received a non-binding acquisition proposal in May from a group that includes DigitalBridge and Crestview Partners, which holds 37% of WideOpenWest. Chief Executive Officer Teresa Elder said during an earnings call in August said that the offer was being reviewed by independent directors. It was also disclosed then that WideOpenWest was exploring options to secure additional financing for expansion efforts.
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