Cablevision Closes Bresnan Deal12/14/2010 2:34 PM Eastern
Cablevision Systems said Tuesday that it has completed the $1.365 billion acquisition of Bresnan Communications through a newly formed subsidiary.
The deal adds about 297,000 subscribers in the Big Sky Country of Utah, Montana, Wyoming and Colorado to Cablevision's 3 million existing subscribers in the New York area.
The Bresnan acquisition is structured as a newly-formed, independent, unrestricted subsidiary of Cablevision.
The transaction was valued at $1.365 billion, subject to certain adjustments, and was financed using an equity contribution by Cablevision of approximately $400 million and non-recourse debt of approximately $1 billion.
The newly-formed subsidiary's capital structure consists of a $75 million revolving credit facility, a $765 million term loan facility and $250 million 8.0% senior notes due 2018.
Neither Cablevision nor any of its subsidiaries, other than the newly-formed subsidiary, will have any obligations or liability with respect to the new credit facility or senior notes.
"We have tremendous respect for the Bresnan management team and employees and the quality they have provided for many years to a growing base of cable, high-speed Internet and phone customers," Cablevision chief operating officer Tom Rutledge said in a statement. "We look forward to continuing this history, this strong commitment to localism and local operations, and to delivering even more features and value including faster Internet, more HD programming and other meaningful enhancements to our customers in these markets."
Cablevision first announced the deal in June.