RCN Closes $130M Credit Facility

RCN Corp. closed a new $130 million first-lien credit facility.

The MSO said the facility is comprised of two parts: a seven-year, $75 million term loan that will be used to refinance both its existing $34 million first-lien and $41 million third-lien term loans; and a five-year, $55 million revolving credit line that will replace RCN's existing letter-of-credit facilities.

RCN also amended its existing second-lien indenture to allow for the early repayment of its third-lien facility and to revise the second-lien covenants to make them consistent with the new first-lien facility.

“This transaction completes the balance-sheet transformation set in motion after the sale of our investments in Megacable and MCM in March 2006,” chief financial officer Michael T. Sicoli said in a prepared statement.