Back to top

Analyst Blog

Cincinnati Bell Inc. (CBB - Analyst Report) announced that it is planning amendments to its credit terms with a bank ready to source a new $400 million Term Loan B Facility maturing 2020. The company expects to use this amount for repaying its 8 1/4% senior notes maturing 2017 and other corporate uses.

Cincinnati Bell’s short-term liquidity position, including $5.5 million of cash and cash equivalents and $192.0 million of undrawn credit facility remains a healthy financial base supporting its operations. The company also reduced its net debt position to $2.19 billion in the second quarter from $2.67 billion at the end of 2012. Further, with the formation of the new entity, CyrusOne, the company removed all debts of the former from its balance sheet.

We believe the company’s balance sheet strength stems from its strategy of offering attractively priced service bundles, including customized blends of local and long-distance phone service, broadband Internet access, and strength in wireless operations will enable it to satiate the growing demand. With a well-designed marketing program, plus well-known brand and strong reputation for offering high-quality service, the company is likely to add more market share.

We believe that Cincinnati Bell enjoys a comfortable market position owing to its distinguished brand name, attractively priced service bundles as well as proactive marketing and expansion strategies. Cincinnati’s Wireline segment remains the prime growth driver for the company based on its strong Fioptics business. New projects and the spin-off of CyrusOne into a separate entity are expected to work in favor of the company and aid earnings growth in the future.

Cincinnati Bell, which operates with other telecom companies like  Frontier Communications Corp. (FTR - Analyst Report), CenturyLink Inc. (CTL - Analyst Report) and Windstream Corporation (WIN - Analyst Report), currently has a Zacks Rank # 1 (Strong Buy).

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
ERBA DIAGNO… ERB 3.80 +7.04%
BANCO DO BR… BDORY 14.74 +5.66%
AIR INDUSTR… AIRI 9.99 +4.15%
EQT MIDSTRE… EQM 98.14 +3.38%
WEATHERFORD… WFT 23.64 +3.10%