Coudersport, Pa. -- Adelphia Communications Corp. said last
week that it sold 8 million newly issued class-A common shares at $43.25 apiece to
Goldman, Sachs & Co. and members of the Rigas family.
Adelphia, the seventh-largest domestic MSO, said Goldman,
Sachs plans to resell the 4 million shares to investors. Chairman John Rigas and members
of his family arranged to buy the other 4 million shares.
The price was about 15 percent below the publicly traded
stock's $50.63 closing price Jan. 8, which was a 52-week high. As a result, Adelphia
shares traded down, closing last Wednesday at $45.63. But Adelphia's stock price has
performed well lately, rising from about $38 in mid-December.
Adelphia said it would raise $346 million from the stock
sales, and the cash will be used to repay subsidiary bank debt, which may be reborrowed
and used for general corporate purposes such as capital expenditures, investments,
acquisitions or other corporate purposes. The company expects to close the stock sales
Thursday (Jan. 21).
Last week, Adelphia sold $400 million in senior notes, also
using the proceeds to repay higher-priced bank debt.
Over the past two years, Adelphia has reduced its
debt-to-cash-flow-leverage ratio to about 6.5 from about 8.6, including last week's
equity sale and the recently announced acquisition of Verto Communications Inc. for stock,
according to a report last week by CIBC Oppenheimer Corp.