Radiate Holdco upsizes add-on term loan to $720M, adds repricing

Radiate Holdco LLC, also known as Astound Broadband, has upsized its proposed add-on term loan B to up to $720 million from $500 million, and expanded the transaction to include a repricing of the $2.68 billion outstanding tranche, according to sources. Commitments are due today by 5 p.m. ET.

Price talk for the covenant-lite TLB due September 2026 is now L+325, with a 0.75% Libor floor and an issue price in the range of 99.75-100. The 101 soft call protection will be reset for six months for the entire pro forma $3.4 billion tranche.

The deal was initially launched as a $500 million add-on TLB with an offer price in the range of 99.05-99.50. The repricing will lower the spread on the existing tranche from L+350, while leaving the floor unchanged.

At revised terms, the yield to maturity is 4.06%-4.12%, compared to 4.44%-4.54% as originally launched.

J.P. Morgan is leading the deal, and Credit Suisse is administrative agent.

Facility ratings are B/B1, with a 3 recovery rating from S&P Global Ratings. Corporate ratings are B/B2, with stable outlooks.

Proceeds will be used to finance the acquisition of WOW! Chicago and to repay revolver borrowings, including those used to finance the acquisition of Harris Broadband. In June, WideOpenWest Inc. announced the sale of its Chicago, Evansville and Anne Arundel service areas to Astound Broadband for $661 million. In July, Texas-based Grande Communications, a division of Astound, announced the acquisition of Harris Broadband, a provider of fiber internet, TV and voice services in areas of Central Texas.

Astound Broadband, backed by Stonepeak, is a broadband communications services provider and cable operator doing business via regional providers RCN, Grande Communications, Wave Broadband and enTouch Systems.