Item 1.01 Entry into a Material Definitive Agreement
On
The Third Restatement Agreement provides for (a) the upsize of the Company's
term "B-3" loan tranche in an aggregate principal amount of
The Additional Term B-3 Loans have the same terms as, and constitute one class of term loans with, the previously established loans forming a part of the Term Loan B-3. The Additional Term B-3 Loans are obligations of the Company and are guaranteed by the Company's wholly owned subsidiaries that guarantee the Company's other obligations under the Amended and Restated Credit Agreement. The Additional Term B-3 Loans are secured, subject to certain exceptions, by substantially all of the assets of the Company and the guarantors.
The Additional Term B-3 Loans may be prepaid at any time without penalty or
premium (subject to customary London Interbank Offered Rate ("LIBOR") breakage
provisions) and will bear interest, at the Company's option, at a rate per annum
determined by reference to either LIBOR or a base rate, in each case plus an
applicable interest rate margin. The applicable interest rate margin for a
LIBOR-based borrowing of Additional Term B-3 Loans will be 2.00% and the
applicable interest rate margin for a base rate-based borrowing of Additional
Term B-3 Loans will be 1.00%. The loans forming a part of the Term Loan B-3 will
amortize in equal quarterly installments equal to approximately
On the Closing Date, the Company used the proceeds from the Additional Term B-3
Loans, together with cash on hand, to repay all of its outstanding term "B-1"
loan that was scheduled to mature in
On the Closing Date, the principal amortization schedule of the Term Loan A-2 was reset to provide for principal amortization payments in equal quarterly installments following the Closing Date at a rate (expressed as a percentage of the outstanding principal amount on the Closing Date) of 2.5% per annum for each of the first two years, 5.0% per annum for the third year, 7.5% per annum for the fourth year and 12.5% per annum for the fifth year (in each case subject to customary adjustments in the event of any prepayment), with the balance due upon maturity.
The Amended and Restated Credit Agreement contains customary representations and warranties, customary affirmative and negative covenants and financial covenants relating to total net leverage, first lien net leverage and anti-cash hoarding.
Except as described above, the Third Restatement Agreement did not alter the principal terms of the Term Loan A-2, the Term Loan B-2, the Term Loan B-3 or the Revolving Credit Facility.
The foregoing description of the Third Restatement Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of the Third Restatement Agreement, which is attached hereto as Exhibit 10.1 and is incorporated herein by reference.
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Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an
Off-Balance Sheet Arrangement of a Registrant
The disclosure set forth above under Item 1.01 is incorporated by reference into this Item 2.03.
Item 8.01 Other Events
On
The Notes and the related guarantees have not been registered under the
Securities Act or the securities laws of any other jurisdiction and may not be
offered or sold in
This current report does not constitute an offer to sell or a solicitation of an offer to buy the securities, nor shall there be any sale of the securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
Cautionary Statement Regarding Forward-Looking Statements
This communication contains "forward-looking statements" that involve risks and
uncertainties. These statements can be identified by the fact that they do not
relate strictly to historical or current facts, but rather are based on current
expectations, estimates, assumptions and projections about the Company's
industry, business, strategy, acquisitions and strategic investments, dividend
policy, financial results and financial condition as well as anticipated impacts
from the COVID-19 pandemic on the Company and future responses. Forward-looking
statements often include words such as "will," "should," "anticipates,"
"estimates," "expects," "projects," "intends," "plans," "believes" and words and
terms of similar substance in connection with discussions of future operating or
financial performance. As with any projection or forecast, forward-looking
statements are inherently susceptible to uncertainty and changes in
circumstances. The Company's actual results may vary materially from those
expressed or implied in its forward-looking statements. Accordingly, undue
reliance should not be placed on any forward-looking statement made by the
Company or on its behalf. Important factors that could cause the Company's
actual results to differ materially from those in its forward-looking statements
include government regulation, economic, strategic, political and social
conditions and the following factors, which are discussed in the Company's
latest Annual Report on Form 10-K (the "Form 10-K"), Form 10-Q for the quarterly
period ended
? the duration and severity of the COVID-19 pandemic and its effects on its
business, financial condition, results of operations and cash flows;
? rising levels of competition from historical and new entrants in its markets;
? recent and future changes in technology;
? its ability to continue to grow its business services products;
? increases in programming costs and retransmission fees;
? its ability to obtain hardware, software and operational support from vendors;
? the effects of any acquisitions and strategic investments by the Company;
? risks relating to the Company's initial minority ownership position in Mega
only a minority of members of the board of managers of MBI, the fact that the
managers of MBI will not owe the same fiduciary duties to the Company that
directors of a corporation would owe to stockholders, and the limited category
of transactions for which the Company's consent will be needed under MBI's
operating agreement;
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? uncertainties related to the exercise of the call option or the put option in
the MBI investment, including the Company's ability to finance the purchase of
the remaining membership interests in MBI on terms acceptable to the Company or
at all;
? risks that its rebranding may not produce the benefits expected;
? damage to its reputation or brand image;
? risks that the implementation of its new enterprise resource planning system
disrupts business operations;
? adverse economic conditions;
? the integrity and security of its network and information systems;
? the impact of possible security breaches and other disruptions, including
cyber-attacks;
? its failure to obtain necessary intellectual and proprietary rights to operate
its business and the risk of intellectual property claims and litigation
against the Company;
? its ability to retain key employees (who the Company refers to as associates);
? legislative or regulatory efforts to impose network neutrality and other new
requirements on its data services;
? additional regulation of its video and voice services;
? its ability to renew cable system franchises;
? increases in pole attachment costs;
? changes in local governmental franchising authority and broadcast carriage
regulations;
? the potential adverse effect of its level of indebtedness on its business,
financial condition or results of operations and cash flows;
? the restrictions the terms of its indebtedness place on its business and
corporate actions;
? the possibility that interest rates will rise, causing its obligations to
service its variable rate indebtedness to increase significantly;
? its ability to incur future indebtedness;
? fluctuations in the Company's stock price;
? the Company's ability to continue to pay dividends;
? provisions in the Company's charter, by-laws and
discourage takeovers and limit the judicial forum for certain disputes and the
liabilities for directors; and
? the other risks and uncertainties detailed from time to time in the Company's
filings with the
Form 10-Qs.
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Any forward-looking statements made by the Company in this communication speak only as of the date on which they are made. The Company is under no obligation, and expressly disclaims any obligation, except as required by law, to update or alter its forward-looking statements, whether as a result of new information, subsequent events or otherwise.
Item 9.01. Financial Statements and Exhibits.
Exhibit No. Description 10.1 Third Restatement Agreement, dated as ofOctober 30, 2020 , amongCable One, Inc. , certain of its wholly owned subsidiaries party thereto,JPMorgan Chase Bank, N.A ., as administrative agent, and the lenders party thereto. 99.1 Press release issued byCable One, Inc. , datedOctober 26, 2020 . 104 The cover page of this Current Report on Form 8-K, formatted in Inline XBRL.
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