Mediacom Completes Morris Deal
Swaps $110Million, 25K Subs for Stock
Mike Farrell -- Multichannel News, 2/13/2009 1:46:27 PM
Mediacom Communications said Friday that it has completed a swap of cash and assets for about 30% of its stock held by one of its earliest investors.
Mediacom, which has about 1.3 million basic customers, said Friday that it completed the deal -- originally announced in September -- with an affiliate of Morris Communications.
According to the transaction, Mediacom exchanged 100% of the shares it held in a wholly-owned subsidiary which included about $110 million in cash and non-strategic cable operations with about 25,000 subscribers. In return, the Morris subsidiary transferred about 28.3 million shares of Mediacom back to the company.
In addition Morris Communications chairman and CEO William Morris and Morris senior vice president of finance Craig Mitchell resigned their seats on Mediacom's board of directors.
"On behalf of my fellow directors and co-workers at Mediacom, I thank Mr. Morris, Mr. Mitchell and the Morris organization for their unwavering support over the years," Mediacom chairman and CEO Rocco Commisso said in a statement. "They have been great partners for more than 10 years and I appreciate the significant role they played in making Mediacom the company it is today."
Banc of America Securities LLC acted as financial adviser and Baker Botts LP acted as legal adviser to Mediacom. RBC Daniels acted as financial adviser to Morris Communications.
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