Cogeco Communications Inc. (TSX: CCA) has announced that its subsidiary Atlantic Broadband has completed the acquisition of cable systems owned by Harron Communications, L.P. and operating under the MetroCast brand name (“MetroCast”), the company said.
Atlantic Broadband raised USUSD 1.85 billion of secured debt through a combination of term loan B and revolving credit facility financings as well as USUSD 315 million of equity through an investment by Caisse de dÃ©pÃ´t et placement du QuÃ©bec (“CDPQ”) for a 21% interest in Atlantic Broadband´s holding company. These proceeds were used to finance the USUSD 1.4 billion purchase price and to refinance Atlantic Broadband´s existing debt.
With the completion of this transaction, Atlantic Broadband will expand its operations across 11 states on the east coast of the United States. On a pro forma basis, the combined company will have 1,250 employees and will generate over USUSD 710 million in combined revenue.
Atlantic Broadband, a wholly owned subsidiary of Cogeco Communications Inc. (TSX: CCA), is the 9th largest cable operator in the United States, based on the number of television service customers served. To learn more about Atlantic Broadband, visit www.atlanticbb.com.
Cogeco Communications Inc. is a communications corporation. It is the 8th largest cable operator in North America, operating in Canada under the Cogeco Connexion name in QuÃ©bec and Ontario, and in the United States under the Atlantic Broadband name in 11 states along the East Coast, from Maine to Florida.