Bresnan Hunts for Cash
By Mike Farrell -- Multichannel News, 8/30/2002 12:44:00 PM
Bill Bresnan is trolling for dollars to help complete his pending $735 million purchase of systems in Montana, Colorado and Wyoming from AT&T Broadband, as his plans to sell some high-yield bonds have apparently fallen through.
His Bresnan Communications has already locked up the equity funding for the deal from private-equity firm Providence Equity Partners Inc. and Toronto-Dominion Capital, the private equity arm of The Toronto-Dominion Bank.
Sources familiar with the matter said the private-equity portion of the deal is probably in the $250 million range.
Those same sources also said Bresnan has received a commitment letter from at least one bank: Toronto-Dominion.
Originally, Bresnan had hoped to finance about 15 percent of the total deal -- the purchase price, plus $300 million over the next three years for upgrades -- with high-yield bonds. But the high-yield market has declined with the struggling economy, so that has become more difficult.
Bresnan would not comment on financing issues, citing confidentiality agreements. But he said the company is on track to close the AT&T Broadband deal by the end of the year.
According to sources familiar with the matter, Bresnan has several choices to replace the high-yield financing, including a return to the banks or through financing companies like GE Capital Corp. According to one source, GE Capital expected to meet with Bresnan representatives this past week.
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