Liberty Capital’s GCI subsidiary refinanced debt due in 2028, replacing about $451 million of notes with proceeds from a new $270 million secured term loan and borrowings under a larger revolving credit facility. The refinancing also removes an earlier maturity trigger that had shortened the maturities of some other GCI loans.
The change shifts GCI’s debt mix toward credit-agreement borrowings and extends the stated maturities of its existing revolving and Term A facilities. The filing does not specify how much GCI drew from the revolver to complete the redemption.
Key details
- New term loan: GCI added a $270 million senior secured Term A loan, due October 28, 2031. Its interest rate is SOFR plus a margin of 2.50% to 3.25%, depending on GCI’s total leverage ratio; the margin was 2.50% on October 28.
- Revolver expanded: On October 16, GCI increased its revolving credit facility from $450 million to $480 million. The increase is in available borrowing capacity, not necessarily an additional amount already borrowed. Revolver loans based on SOFR carry a margin of 1.50% to 2.25% tied to GCI’s total leverage ratio; the margin was 1.50% on October 28.
- 2028 notes redeemed: On October 28, GCI used the term-loan proceeds and revolver borrowings, after fees and expenses, to redeem all approximately $451 million of its 4.750% senior notes due 2028.
- Other loan maturities extended: With the notes fully redeemed, GCI’s revolving credit facilities now mature on March 25, 2030, and its existing Term A loans on March 25, 2031. Those facilities had been subject to earlier maturities tied to the 2028 notes. The new $270 million loan has its separate October 2031 maturity.
- Repayment terms: The new term loan requires quarterly principal payments equal to 0.25% of its original amount, with the rate potentially rising to 1.25% depending on GCI’s secured leverage ratio. GCI may repay it early without a prepayment penalty, apart from customary breakage costs.
- Collateral: Obligations under GCI’s credit agreement are secured by substantially all assets of GCI and its subsidiary guarantors, as well as the equity interests of GCI Holdings.
Plain-English implications
GCI has retired the 2028 notes and pushed out the specified maturities of its revolving facilities and existing Term A loans. In their place, it has added a secured loan due in 2031 and increased its revolving borrowing capacity by $30 million. The new and existing credit-agreement obligations are backed by substantial company assets.