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JONES INTERCABLE $279 MILLION SUBORDINATED DEBENTURES RATED 'B+' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, Oct. 14 /PRNewswire/ -- Jones Intercable, Inc.'s $279.5 million outstanding senior subordinated debentures are rated `B+' by Fitch. The issues include $160 million 11-1/2 percent senior subordinated debentures due 2004, $100 million 10-1/2 percent senior subordinated debentures due 2008, and $19.5 million 7-1/2 percent convertible subordinated debentures due 2007. The company's implied senior debt rating is `BB.' This is the first time Fitch has rated Jones Intercable debt. The credit trend is stable.
 The rating acknowledges the company's large cash interest burden, significant capital spending requirements, and the negative financial impact from re-regulation. It also acknowledges successful deleveraging efforts over the past three years, its ability to significantly extend scheduled debt maturities, and the long-term growth prospects of the cable television industry.
 On a running rate basis, Jones is leveraged at less than 6.0 times (x) debt-to-cash flow, down significantly from almost 8.0x in 1991. Fitch views the company's leverage as moderate because of the cable television industry's stable cash flow characteristics, and because the company extended the average remaining life of its outstanding public debt from about six years at May 31, 1992, to almost 13 years at May 31, 1993. Currently, the company has no material scheduled debt maturities until 2002.
 Leverage is likely to remain at current levels over the near-term because all of Jones' surplus operating cash flow is expected to go toward interest obligations and continued capital investment, not debt repayment. While the financial burden associated with re-regulation and capital investment will make it more difficult for Jones to deleverage over the near term, it will not entirely eliminate cash flow growth, nor will it severely limit the company's access to external funds.
 Although leverage is considered moderate, cash flow coverage of interest is thin at about 1.7x on a running rate basis. Cash flow coverage is likely to remain at current levels given that the company's high coupon subordinated debt is not callable in the near future. This is partially mitigated by the fact that approximately 85 percent of the company's outstanding debt is fixed. In addition, the company can realistically expect to achieve 6 percent to 8 percent operating cash flow growth over the next several years.
 Jones Intercable, Inc. acquires, develops, and operates cable television systems for itself, for affiliated managed public limited partnerships, and for other affiliated entities. At May 31, 1993, the company had total revenues of $123 million.
 -0- 10/14/93
 /CONTACT: Keith B. Foley, 212-908-0572, or Stuart M. Rossmiller, 212-908-0639, both of Fitch/
 (JOIN)


CO: Jones Intercable, Inc. ST: Colorado IN: TSL ENT SU: RTG

CK -- NY050 -- 2245 10/14/93 12:36 EDT
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Publication:PR Newswire
Date:Oct 14, 1993
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