Cable Operators

BC Partners, CPPIB Complete Suddenlink Acquisition

Deal Valued St. Louis-MSO at $6.6 Billion 11/20/2012 5:25 AM Eastern

British private equity group BC Partners, Canadian pension fund CPP Investment Board and a management team led by founder, chairman and CEO Jerry Kent said Tuesday that they have completed their acquisition of St. Louis-based cable operator Suddenlink Communications.

The deal was announced in July and valued the cable operator at about $6.6 billion, which includes about $2 billion in equity contributed by BC Partners, CPPIB and Suddenlink management, incremental debt of $500 million and the assumption of existing net liabilities.

Proceeds were used to acquire the ownership stake of all holders of Suddenlink's preferred and common equity, led by Goldman Sachs Capital Partners and including Quadrangle, Oaktree Capital Management, and The Jordan Co.

"The timely closing of this acquisition marks a new and exciting chapter in our company's history," Kent said in a statement. "With fresh, forward-looking capital, new investors, and a talented team of over 6,000 people, we are in a great position to continue serving our customers with excellence and delivering strong operating results."

LionTree Advisors, a division of EM Securities, and Goldman Sachs acted as financial advisors and  Paul Hastings LLP and Seyfarth Shaw LLP acted as legal advisors for Suddenlink in the transaction. Credit Suisse acted as financial advisor; Latham & Watkins LLP and Wachtell, Lipton, Rosen & Katz LLP acted as legal advisors for For BC Partners and CPPIB. CPPIB was also separately advised by Torys LLP. For existing equity holders, Fried, Frank, Harris, Shriver & Jacobson LLP acted as legal advisor.

 

March