Suddenlink Seeks to Refinance its $2.5 Billion Credit Facility

Source: Sunddenlink Press Release

Cequel Communications Holdings I, LLC (dba Suddenlink) announced that its subsidiary, Cequel Communications, LLC, intends to begin a process to refinance its existing $2.525 billion credit facility with a new $2.7 billion credit facility.

The New Credit Facility is expected to consist of a $500 million revolver and a $2.2 billion term loan B. If the refinancing of the Existing Credit Facility is successful, the company expects to use the proceeds from the New Credit Facility to repay in full and terminate the Existing Credit Facility and to make distributions to Cequel Communications Holdings, LLC, Cequel`s parent company, of $370 million in March 2012 and up to an additional $70 million in May 2012. Cequel Holdings is expected to use such distributions to repay a portion of the capital contributions made by holders of common units of Cequel Holdings and to make certain payments to holders of options and restricted units of Cequel Holdings.

Cequel has no current plans for any further distributions. In any event, Cequel will not make any such additional distributions prior to April 1, 2013. There is no guarantee that any such refinancing transactions will be consummated on terms acceptable to the company or at all.

In connection with the refinancing, Cequel is disclosing to potential lenders under the New Credit Facility the following preliminary information with respect to its results for the year ended December 31, 2011. The Preliminary Financial Information below represents Cequel`s preliminary estimates and is based on information available to its management team as of the date of this release.

The Preliminary Financial Information as described below is presented both on an actual basis and on a pro forma basis to include the acquisition of all of the issued and outstanding capital stock of NPG Cable, Inc., Mercury Voice and Data Company, and NPG Digital Phone, Inc., which occurred on April 1, 2011, as well as other previously disclosed small acquisitions and divestitures, as if those transactions had been consummated on January 1, 2010.

On a pro forma basis for the year ended December 31, 2011, revenue is expected to be $1,929.9 million, a 7.1% increase over revenue for the prior year. Adjusted EBITDA is expected to be between $715.0 and $718.0 million, an expected increase of 8.6% to 9.1% over Adjusted EBITDA for the prior year. For the year ended December 31, 2011, Cequel added approximately 151,300 revenue generating units, an increase of approximately 4.6%. Pro Forma Adjusted EBITDA, as defined in our credit facility and bond indenture, is expected to be between $723.0 million and $726.0 million for the year ended December 31, 2011.

Suddenlink Reports Third Quarter 2011 Results

Source: Suddenlink Press Release

Cequel Communications Holdings I, LLC ("Cequel," and together with its subsidiaries, the "Company" or "Suddenlink") today reported financial and operating results for the three and nine months ended September 30, 2011.

Third quarter 2011 revenues rose 7.3%, largely attributable to increases in residential high-speed Internet, telephone and advanced digital video revenues, and growth in revenues from our commercial and carrier businesses. Adjusted EBITDA for the third quarter 2011 was $177.7 million, an increase of 9.2% from the same quarter last year, resulting in an Adjusted EBITDA margin of 36.8%. Excluding the impact of the non-recurring expenses associated with Hurricane Irene and the acquisition and integration of NPG Cable, Adjusted EBITDA for the third quarter 2011 would have increased 9.8% from the same quarter last year.

Income from operations for the third quarter 2011 was $72.4 million, an increase of 21.5%, compared to $59.6 million for the third quarter 2010 due to revenue increases year-over-year outpacing operating, selling and administrative, and depreciation and amortization expense increases. Net loss was approximately $5.2 million for the third quarter 2011, compared to a net loss of $5.1 million for the third quarter 2010.

Suddenlink Reports Second Quarter 2011 Results

Source: Suddenlink Press Release

Cequel Communications Holdings I, LLC, dba Suddenlink, reported financial and operating results for the three and six months ended June 30, 2011. Second quarter 2011 revenues rose 7.2%, largely attributable to the increase in the number of new telephone, high-speed Internet and digital video customers, an increase in the penetration of existing customers for these services, video and high-speed Internet rate increases, and incremental video revenues from video on demand, high definition television and digital video recorder services as more customers purchased advanced video services from us during the trailing twelve months. Offsetting this growth, in part, was a decrease due to the impact of bundling and promotional discounts, and a decline in basic video customers, including seasonal losses in the recently acquired NPG Cable properties, and our limited marketing in those systems until the integration was complete in July 2011.

Income from operations for the second quarter 2011 was $73.0 million, an increase of 11.8%, compared to $65.3 million for the second quarter 2010. Net loss was approximately $42,000 for the second quarter 2011, compared to a net loss of $38.3 million for the second quarter 2010. The second quarter of 2010 included $34.1 million of losses from interest rate swap terminations and debt extinguishment.

CATV Broadband and Voice Penetration Improves

Source: Phone Numbers

At a time when video penetration has dropped for cablecos, cable voice and broadband subscriptions are on the rise. Cable providers delivered broadband services to nearly 80% of their basic cable subscribers in 1Q11, and companies across the board improved voice and broadband penetration of homes passed.

Get the numbers here.

Suddenlink Closes NPG Cable Deal

Source: Suddenlink Press Release

Cequel Communications, LLC, which does business as Suddenlink Communications, closed its acquisition of NPG Cable, Inc., and its subsidiaries from News‐Press & Gazette Co., for approximately $350 million, subject to customary working-capital closing adjustments.

NPG’s cable systems serve approximately 83,000 customers, representing approximately 210,000 revenue generating units or RGUs, with operations in St. Joseph, Mo.; Mammoth Lakes, Calif.; and several, clustered Arizona communities, including Flagstaff and Sedona, Lake Havasu and Kingman.