Grande Agrees to Sale

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Grande Communications, the San Marcos, Texas-based overbuilder, said in a Securities and Exchange Commission filing Monday that it has completed the recapitalization of the company with private equity group ABRY Partners.

Grande first announced that it had entered into a non-binding letter of intent with ABRY on June 9.

Back in January, Grande hired New York-based cable investment Waller Capital Corp. to explore strategic alternatives. In April, Grande hinted at a sale stating in SEC filings that a third party may be trying to raise money for a bid. That filing came after reports that ABRY was trying to raise debt for a bid, valuing a possible deal at about $250 million.

According to the SEC documents, adding up all the elements of the deal -- including $103.8 million in new debt, $147.6 million for the equity and $13.6 million in capital lease obligations -- brings the total value of transaction to about $265 million.

The recapitalization is basically a sale - Grande Manager will control 75.3% of the voting power of the new company, with Grande Holdings holding the remainder - and is expected to be closed before the end of thee month.
Waller Capital served as exclusive financial adviser to Grande Holdings in the transaction.
Grande has about 101,000 customers in several communities in Texas.

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