Stonepeak Partners-backed Radiate launched a deal to raise $400 million in fresh capital from its owner and also restructure existing debt.
The liquidity injection will be split across a second-out term loan and a third-out loan, said the people, who asked not to be identified discussing a private matter. The financing will pay-in-kind, which allows the cable provider to defer paying interest in cash and instead pay with additional debt, they said.
A representative for Stonepeak declined to comment. A representative for Radiate didn’t immediately respond to requests for comment.
The debt restructuring was several months in the making and reconfigures which creditors get paid out first, the people said.
Radiate’s existing first-lien term loan lenders will be able to exchange into a new first-out term loan due in 2029 at 100 cents on the dollar. The new loan will pay 1.5% interest in kind and 3.5 percentage points over the Secured Overnight Financing Rate in cash, according to the people.
Meanwhile, first-lien noteholders can swap into new first-out notes at a discount of 98 cents. The new paper will pay 1.5% interest in kind and 4.75% in cash, the people said.
Lastly, the unsecured noteholders can roll into new second-out notes maturing 2030 at a discount of 83 cents. That debt will pay 3.25% interest in kind and 6% in cash, the people said.
Any firms that don’t agree to the deal will see their collateral stripped and will be pushed down the repayment line, the people added.
The debt restructuring, which is open to all participants, has garnered support from at least 98% of existing term loan lenders, around 99% of first-lien noteholders and 86% of unsecured noteholders, said the people.
Radiate is working with PJT Partners Inc. and Kirkland & Ellis, while creditors have engaged Evercore Inc. and Gibson Dunn & Crutcher, Bloomberg previously reported.
First-lien lenders have been operating under a cooperation agreement in effect until the company’s roughly $3.3 billion term loan’s 2026 maturity, Bloomberg reported. Bloomberg