A recent 8-K disclosure filed by Sparklight (dba Cable One) after market close on 22 September states that the company drew $700m on its $1.25bn revolving credit facility due February 2028, with a $480m obligation to GTCR due next week.
The filing offers little direction beyond that the draw is meant to “increase cash on hand and preserve financial flexibility.” According to the company’s latest 10-Q, the company had $166.2m of cash and cash equivalents and $550m drawn on the revolver. This latest draw could mean the revolver is now fully drawn.
However, according to sources, the company is not engaging with its creditors at this time.
More recently in July, the company was reportedly pitching a roughly $1bn bond at a yield of around 12% to fund the put price and pay down 2028 and 2029 maturities. The paydowns were to be coupled with increases in spreads to incentivize creditors to extend maturities.
A source familiar with that proposed deal told 9fin that investor interest never materialized and there are no ongoing efforts to raise new debt.
One possible use of the cash drawdown is the impending acquisition by Cable One of GTCR’s 55% stake in Mega...
