SOURCE: Cequel Communications Holdings I, LLC

January 20, 2011 10:00 ET

Cequel (Suddenlink) Completes $625 Million Offering

Third Such Offering Closed in 14 Months for Total of $1.825 Billion

ST. LOUIS, MO--(Marketwire - January 20, 2011) - Cequel Communications Holdings I, LLC ("Cequel") and its subsidiary co-issuer, Cequel Capital Corporation, announced today that they closed their previously announced private offering to eligible purchasers of $625 million aggregate principal amount of 8.625 percent Senior Notes due 2017 (the "Notes"). 

The Notes will form a part of the same series as the outstanding $1.2 billion aggregate principal amount of 8.625 percent Senior Notes due 2017 co-issued on November 4, 2009, and May 4, 2010, by Cequel and Cequel Capital Corporation. The Notes were offered only to qualified institutional investors pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"), and to persons outside the United States in compliance with Regulation S under the Securities Act.

The Notes, which bear an interest rate of 8.625 percent, were sold at a price of 102.875 percent, plus accrued interest from November 15, 2010 to the date of delivery, to yield an effective interest rate of 7.892 percent.

"I consider the fact that we've successfully gone to the capital markets for more than $1.8 billion in 14 months to be quite an achievement, especially given the larger economic conditions," said Jerry Kent, the company's Chairman and Chief Executive Officer. "I further believe this achievement is a testament to the value of our investments in customer service and the overall soundness of our business strategy."

Net proceeds from the sale of the Notes and cash on hand will be used to fund the acquisition of NPG Cable, Inc.; repay all of the original capital contributions made by holders of preferred interests of Cequel's parent; repay a portion of the capital contributions made by holders of common interests of Cequel's parent; make certain payments to holders of options in and restricted common units of Cequel's parent; and pay related costs, fees and expenses. 

Net proceeds from the offering that closed November 4, 2009, plus cash on hand, were used to repay a portion of the loans outstanding under the credit facilities of Cequel Communications, LLC, a subsidiary of Cequel; to pay related fees and expenses; and, combined with an earlier amendment to the company's first lien credit facility, to facilitate "Project Imagine," an approximately $233 million capital investment plan through 2012, above and beyond the company's traditional capital spending levels. (Project Imagine is designed to improve the capacity and efficiency of Cequel's network and the quantity and quality of the TV, Internet, and phone services it offers to customers.)

Net proceeds from the subsequent offering that closed May 4, 2010, were used to repay all borrowings under the second lien credit facility of Cequel Communications, LLC; to pay related costs, fees and expenses; and for working capital and general corporate purposes.

The Notes have not been registered under the Securities Act or any state securities laws, and unless so registered, may not be offered or sold in the United States except with an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws. This press release does not constitute an offer to sell or the solicitation of an offer to buy any security and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offering, solicitation or sale would be unlawful.

This press release contains "forward-looking statements," within the meaning of the Private Securities Litigation Reform Act of 1995 that involve a number of risks and uncertainties. Forward looking statements, which are based on management's current expectations, are generally identifiable by the use of terms such as "may," "will," "expects," "believes," "intends," "anticipates" and similar expressions. Because these forward-looking statements involve known and unknown risks and uncertainties, there are important factors that could cause actual results, events or developments to differ materially from those expressed or implied by these forward-looking statements. Readers are cautioned not to place undue reliance on such forward-looking statements. All information is current as of the date this press release is issued, and Cequel undertakes no duty to update this information.

Cequel does business as Suddenlink Communications. Suddenlink ( is the seventh largest cable operator in the United States, supporting the information, communication and entertainment demands of approximately 1.3 million residential customers and thousands of commercial customers in Arkansas, Louisiana, North Carolina, Oklahoma, Texas, West Virginia and elsewhere. Suddenlink simplifies its customers' lives through one call for support, one connection, and one bill for TV, Internet, phone and other services.

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