Cablevision to raise $1 billion in senior debt, extend debt maturities

Cablevision to raise $1 billion in senior debt

BETHPAGE, N.Y. — Cablevision Systems Corp. on Monday unveiled a series of transactions to increase its financial flexibility, including raising $1 billion in debt and extending the debt maturities at a subsidiary.

The cable TV operator plans to offer $1 billion in senior notes due 2018 and 2020. Proceeds will be use to pay down debt that’s coming due soon, to make a tender offer for senior notes due 2012 that carry an 8 percent interest rate and to cover general corporate purposes.

Moody’s Investors Service gave a junk bond “B1″ rating to the offering.

Cablevision also said its subsidiary CSC Holdings Inc. has reached an agreement with lenders to extend the maturity date of certain borrowings. The company wants to reduce the amount of debt coming due in 2012 and 2013.

About $460 million of $650 million in term loans will now be due in March 2015 instead of February 2012 and the maturity date on $1.7 billion out of $2.2 billion in loans will be pushed back by three years to March 2016.

In addition, the expiration date on about $820 million in commitments on a $1 billion revolving credit line will be extended to March 2015 from February 2012.

Lenders also agreed to increase its commitments to a revolving line of credit by $410 million at a maturity date of March 2015.

These extensions prompted Moody’s to upgrade Cablevision’s liquidity rating to the speculative “SGL-1,” meaning the company can meet its obligations in the next 12 months.

It raised the rating outlook for Cablevision and its Rainbow National Services LLC unit, to “Positive” from “Stable.”

J.P. Morgan Securities Inc. is one of the joint book-runners for the $1 billion notes offering. Cablevision, based in Bethpage, N.Y., did not disclose the others.

J.P. Morgan, Banc of America Securities LLC, and Barclays Bank PLC are the joint lead arrangers for the CSC Holdings transactions.