Cable One said it has “upsized” its previously reported public offering of additional stock, now planning to raise about $425 million in shares to help pay off debt and for other corporate purposes, including funding possible future acquisitions.
In a press release, Cable One said it would offer 250,000 shares of its common stock at $1,700 each, for gross proceeds of about $425 million. It had earlier planned to raise about $400 million from the offering. The company added that it has granted the underwriters of the offering the option for 30 days to purchase an additional 37,500 shares at the offering price (raising another $63 million), less the underwriting discount.
Cable One shares have been a top performer in the cable sector, rising about 80% in 2019. The shares are up about 30% so far this year and were priced at $1,802 each (down $13 or 0.7%) in early trading Thursday.
Cable One said in a press release that the net proceeds from the offering will be about $409.1 million, or $470.4 million if the underwriters exercise their option to purchase additional shares.
J.P. Morgan Securities, BofA Securities and Wells Fargo Securities are acting as lead book-running managers for the offering. Barclays Capital, Credit Suisse Securities (USA), SunTrust Robinson Humphrey and TD Securities (USA) are also acting as book-running managers. Co-managers are BMO Capital Markets, BTIG, Citizens Capital Markets, Deutsche Bank Securities, Fifth Third Securities, MUFG Securities Americas, B. Riley FBR, Cowen and Company, KeyBanc Capital Markets, Raymond James & Associates and Stephens.