Cincinnati Bell Inc. Announces Completion of Notes Offering and Revolving Credit Facility
CINCINNATI, Feb 16, 2005 (BUSINESS WIRE) -- Cincinnati Bell Inc. (NYSE:CBB) (the "Company") announced today that it has completed the placement of $250 million of its 7% Senior Notes due 2015 and $100 million of its 8 3/8% Senior Subordinated Notes due 2014. The Company also announced that it has finalized a new $250 million revolving credit facility. The proceeds from the notes and the new revolving credit facility were used to repay all outstanding borrowings under, and terminate, the Company's existing credit facilities.
These transactions complete the first stage of the Company's previously announced refinancing plan. In the second stage, the Company expects to redeem all of its 16% Senior Subordinated Discount Notes due 2009 with a combination of cash from operations and new borrowings under the new credit facility. The Company estimates that the second stage of the refinancing plan, which the Company expects to complete by the first quarter of 2006, will increase cash flow(a) by $20 million to $30 million on an annualized basis.
The securities have not and will not be registered under the Securities Act of 1933, as amended, or the securities laws of any other jurisdiction and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
This press release shall not constitute an offer to sell or a solicitation of an offer to buy such notes. The company has issued the notes only to qualified institutional buyers under Rule 144A and to persons outside the United States under Regulation S.
About Cincinnati Bell Inc.
Cincinnati Bell Inc. (NYSE:CBB) is parent to one of the nation's most respected and best performing local exchange and wireless providers with a legacy of unparalleled customer service excellence. Cincinnati Bell provides a wide range of telecommunications products and services to residential and business customers in Ohio, Kentucky and Indiana. Cincinnati Bell is headquartered in Cincinnati, Ohio. For more information, visit www.cincinnatibell.com.
Safe Harbor Note
Certain of the statements and predictions contained in this release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act. In particular, any statements, projections or estimates that include or reference the words "believes," "anticipates," "plans," "intends," "expects," "will," or any similar expression fall within the safe harbor for forward-looking statements contained in the Reform Act. Actual results or outcomes may differ materially from those indicated or suggested by any such forward-looking statement for a variety of reasons, including but not limited to, Cincinnati Bell's ability to maintain its market position in communications services, including for wireless, wireline and internet services, general economic trends affecting the purchase or supply of telecommunication services, world and national events that may affect the ability to provide services, changes in the regulatory environment, any rulings, orders or decrees that may be issued by any court or arbitrator, restrictions imposed under our various credit facilities and debt instruments, work stoppages caused by labor disputes, adjustments resulting from year-end audit procedures and Cincinnati Bell's ability to develop and launch new products and services. More information on potential risks and uncertainties is available in the company's recent filings with the Securities and Exchange Commission, including Cincinnati Bell's annual Form 10-K report, quarterly Form 10-Q reports and Forms 8-K. The forward-looking statements included in this release represent the company's estimates as of February 16, 2005. The company anticipates that subsequent events and developments will cause its estimates to change.
Use of Non-GAAP Financial Measures
(a) The Company has presented certain information regarding cash flow in the preceding discussion because the Company believes cash flow provides a useful measure of a company's operational performance, liquidity and financial health. Cash flow is defined by the company as SFAS 95 cash provided by (used in) operating, financing and investing activities, less changes in restricted cash in operating activities, issuance and repayment of long-term debt in financing activities, short-term borrowings (repayments) in financing activities and proceeds from the sale of discontinued operations and assets in investing activities. Cash flow should not be considered as an alternative to net income (loss), operating income (loss), cash flow from operating activities, or the change in cash on the balance sheet and may not be comparable with cash flow as defined by other companies.
SOURCE: Cincinnati Bell Inc.
Cincinnati Bell Inc. Michael Vanderwoude, 513.397.7685 email@example.com