Cequel (Suddenlink) Completes $600 Million Debt Offering

• Press Release
• Source: Cequel Communications
• On 10:29 am EST, Thursday November 5, 2009

ST. LOUIS--(BUSINESS WIRE)--Cequel Communications Holdings I, LLC (“Cequel”) and its subsidiary co-issuer, Cequel Capital Corporation, announced today the completion of their previously announced $600 million debt (“senior notes” or “notes”) offering. Net proceeds from the offering, plus cash on hand, were used to repay a portion of the loans outstanding under the credit facilities of Cequel Communications, LLC (d/b/a Suddenlink Communications) – a subsidiary of Cequel – and to pay related fees and expenses.

On Oct. 26, when Cequel announced its intent to market this offering, the company sought to issue an aggregate principal amount of $400 million. That amount was increased to $600 million based on demand for the debt among eligible purchasers. The senior notes, which bear an interest rate of 8.625 percent, were sold at a discount to yield an effective interest rate of 8.875 percent.

“Upsizing this offering to $600 million would be a remarkable achievement under virtually any circumstances, but especially so in the current economic environment,” said Jerry Kent, Suddenlink’s Chairman and Chief Executive Officer. “I firmly believe that the completed offering and related bank amendment will help us continue our track record of providing a superior level of service to our customers and growing our business.”

On Oct. 22, Suddenlink received lenders’ approval for an amendment to its first lien credit facility. Combined, the amendment and debt offering will facilitate an approximately $233 million capital investment plan through 2012, above and beyond the company’s traditional capital spending levels. This new capital plan is designed to improve the capacity and efficiency of Suddenlink’s network and the quantity and quality of the TV, Internet, and phone services it offers to customers.

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.

Suddenlink Communications (www.suddenlink.com) is among the 10 largest cable broadband companies 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, California, Louisiana, Missouri, 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.

Cequel Communications
Pete Abel, 314-315-9346