Debt and Other Financing Arrangements

9 Months Ended

Sep. 30, 2022

Debt Disclosure [Abstract]

Debt and Other Financing Arrangements

5.    Debt and Other Financing Arrangements

The Company’s debt consists of the following:

(dollars in millions)	September 30, 2022			December 31, 2021
Current portion of long-term debt:
Credit Agreement - Term B-1 Loans	$	5.0		$	5.0
Credit Agreement - Term B-2 Loans		6.5			6.5
7 1/4% Senior Notes due 2023 (1)		23.1			—
Paniolo Fiber Assets Financing Arrangement		0.5			0.5
Other financing arrangements		0.3			0.5
Finance lease liabilities		9.3			7.2
Current portion of long-term debt		44.7			19.7
Long-term debt, less current portion:
Receivables Facility		178.4			153.6
Credit Agreement - Revolving Credit Facility		164.0			—
Credit Agreement - Term B-1 Loans		491.3			495.0
Credit Agreement - Term B-2 Loans		638.6			643.5
7 1/4% Senior Notes due 2023 (1)		—			24.0
Various Cincinnati Bell Telephone notes (1)		96.6			97.5
Paniolo Fiber Assets Financing Arrangement		21.9			22.3
Other financing arrangements		—			0.4
Finance lease liabilities		42.0			42.3
		1,632.8			1,478.6
Net unamortized discount		(4.5	)		(4.9	)
Unamortized note issuance costs		(40.1	)		(44.8	)
Long-term debt, less current portion		1,588.2			1,428.9
Total debt	$	1,632.9		$	1,448.6

(1) As of September 30, 2022, the net carrying amounts of the 7 ¼% Senior Notes due 2023 and Various Cincinnati Bell Telephone notes included unamortized fair value adjustments related to the Merger of $0.8 million and $8.7 million, respectively. As of December 31, 2021, the net carrying amounts of the 7 ¼% Senior Notes due 2023 and Various Cincinnati Bell Telephone notes included unamortized fair value adjustments related to the Merger of $1.7 million and $9.6 million, respectively. Each adjustment is being amortized over the life of the respective notes and is recorded as a reduction of interest expense.    

Credit Agreement

The Company had $164.0 million of outstanding borrowings on the Credit Agreement’s revolving credit facility, leaving $236.0 million available for borrowings as of September 30, 2022. The revolving credit facility matures in September 2026, and the Term B-1 Loans and Term B-2 loans under the Credit Agreement mature in November 2028.

Accounts Receivable Securitization Facility

As of September 30, 2022, the Company had $178.4 million in borrowings and $21.0 million of letters of credit outstanding under the accounts receivable securitization facility ("Receivables Facility”), leaving $14.6 million remaining availability on the total borrowing capacity of $214.0 million. The maximum borrowing limit for loans and letters of credit under the Receivables Facility is $215.0 million in the aggregate. The available borrowing capacity is calculated monthly based on the quantity and quality of outstanding accounts receivable, and thus may be lower than the maximum borrowing limit. The Receivables Facility is subject to renewal in June 2023 and has a termination date in June 2024. In the second quarter of 2022, the Company executed amendments to its Receivables Facility, which replaced, amended and added certain provisions and definitions including the replacement of LIBOR with SOFR, a rate equal to the secured overnight financing rate as administered by the Federal Reserve Bank of New York. 

Under the Receivables Facility, certain U.S. and Canadian subsidiaries, as originators, sell their respective trade receivables on a continuous basis to Cincinnati Bell Funding LLC (“CBF”) or Cincinnati Bell Funding Canada Ltd. ("CBFC"), wholly-owned consolidated subsidiaries of the Company. Although CBF and CBFC are wholly-owned consolidated subsidiaries of the Company, CBF and CBFC are legally separate from the Company and each of the Company’s other subsidiaries. Upon and after the sale or contribution of the accounts receivable to CBF or CBFC, such accounts receivable are legally assets of CBF and CBFC and, as such, are not available to creditors of other subsidiaries or the parent company. The Receivables Facility includes an option for CBF to sell, rather than borrow against, certain receivables on a non-recourse basis. As of September 30, 2022, the outstanding balance of certain accounts receivable sold, rather than borrowed against, was $46.3 million.