Debt and Other Financing Arrangements

6 Months Ended

Jun. 30, 2025

4. Debt and Other Financing Arrangements

The Company’s debt consists of the following:


(dollars in millions)	June 30, 2025			December 31, 2024
Current portion of long-term debt:
Credit Agreement - Term B-1 Loans	$	5.0		$	5.0
Credit Agreement - Term B-3 Loans		2.0			2.0
Credit Agreement - Term B-4 Loans		9.3			9.3
Other bank debt		—			18.9
Paniolo Fiber Assets Financing Arrangement		—			0.5
Finance lease liabilities		9.9			9.9
Current portion of long-term debt		26.2			45.6
Long-term debt, less current portion:
Credit Agreement - Term B-1 Loans		477.5			480.0
Credit Agreement - Term B-3 Loans		194.0			195.0
Credit Agreement - Term B-4 Loans		916.6			921.3
Various Cincinnati Bell Telephone notes (1)		93.1			93.8
Paniolo Fiber Assets Financing Arrangement		—			20.9
Digital Access Ohio Advance		10.3			10.3
Finance lease liabilities		38.2			37.7
		1,729.7			1,759.0
Net unamortized discount		(5.2	)		(5.8	)
Unamortized note issuance costs		(29.3	)		(33.0	)
Long-term debt, less current portion		1,695.2			1,720.2
Total debt	$	1,721.4		$	1,765.8

(1)

As of June 30, 2025 and December 31, 2024, the net carrying amount of the Various Cincinnati Bell Telephone notes included an unamortized fair value adjustment recorded on the Company's merger date, September 7, 2021, of $5.2 million and $5.9 million, respectively. The adjustment is amortized over the life of the notes and is recorded as a reduction of interest expense.

Credit Agreement

The Company had no outstanding borrowings on the Credit Agreement’s revolving credit facility, leaving $400.0 million available for borrowings as of June 30, 2025. The revolving credit facility matures in August 2028, and the Term B-1 Loans, Term B-3 Loans and Term B-4 Loans under the Credit Agreement mature in November 2028.

Accounts Receivable Securitization Facility

As of June 30, 2025, the Company had no borrowings and $26.7 million of letters of credit outstanding under the Network Receivables Facility, leaving $28.8 million remaining availability on the total borrowing capacity of $55.5 million. The maximum borrowing limit for loans and letters of credit under the Network Receivables Facility is $60.0 million, in the aggregate. The available borrowing capacity on the facility is calculated monthly based on the quantity and quality of outstanding accounts receivable, and thus may be lower than the maximum borrowing limit.

In March 2025, the Company executed an amendment to the Network Receivables Facility that increased the maximum borrowing limit for loans and letters of credit to $60.0 million, extended the termination date to March 2028 and extended the renewal date to March 2027. The Company incurred deferred financing costs of $0.4 million in the three months ended March 31, 2025 related to amending the Network Receivables Facility.

Under the Network Receivables Facility, certain U.S. subsidiaries, as originators, sell their respective trade receivables on a continuous basis to Cincinnati Bell Funding LLC (“CBF”), wholly-owned consolidated subsidiary of the Company. Although CBF is a wholly-owned consolidated subsidiary of the Company, CBF is 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, such accounts receivable are legally assets of CBF and, as such, are not available to creditors of other subsidiaries or the parent company.

Cincinnati Bell Telephone Notes ("CBT Notes")

CBT Notes consist of remaining principal of 6.30% unsecured senior notes due 2028, which are guaranteed on a subordinated basis by the Company but not its subsidiaries. The CBT Notes may be redeemed at any time and are subject to customary events of default.

Paniolo Fiber Assets Financing Arrangement

In connection with the acquisition of the assets of Paniolo in the third quarter of 2021, the Company’s wholly-owned subsidiary, Hawaiian Telcom Inc., entered into a purchase money financing agreement to finance a portion of the Paniolo Acquisition. The Paniolo fiber assets financing arrangement provided for a five-year $23.0 million loan secured by the Paniolo assets acquired in the transaction.

In February 2025, the Company extinguished the debt associated with the financing arrangement at a discounted rate of 99.25%. The Company paid the outstanding debt balance as well as the accrued and unpaid interest as of the extinguishment date. As a result of the debt extinguishment, a nominal gain was recorded.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

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+ Details

CINCINNATI BELL INC 10-Q