Recapitalized LodgeNet Expands Pact With DirecTV3/17/2013 8:00 PM Eastern
With its acquisition by Colony Capital expected by the end of the month, LodgeNet said Tuesday it has expanded its agreement with satellite-TV giant DirecTV, offering upgraded products and financing for the company’s hospitality and health-care customers.
In December, private-equity firm Colony Capital agreed to invest about $60 million in a recapitalization of LodgeNet, implemented through a pre-packaged Chapter 11 bankruptcy filing. Colony and its affiliates will receive 100% of LodgeNet’s equity. The deal is expected to close by the end of March.
The DirecTV agreement, which is contingent on the closing of the Colony investment, will provide LodgeNet’s hospitality and healthcare customers with upgraded products and services, as well as a financing program to facilitate upgrades to HDTV service at little or no out-of-pocket capital expense to its customers. LodgeNet serves about 1.4 million hotel and hospital rooms in the U.S. and Canada.
LodgeNet customers will gain access to new a la carte programming options, including DirecTV’s “NFL Sunday Ticket” out-of-market package and other exclusive content. LodgeNet will also introduce a new user interface — similar to the one DirecTV offers its residential customers — and an expanded level of support from the TV provider.