Grande To Be Sold

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Grande Communications, the San Marcos, Texas-based overbuilder that went on the block last year, has agreed to a recapitalization with Boston-based investment banker ABRY Partners for an undisclosed sum.

According to a filing with the Securities and Exchange Commission on Friday, Grande entered into a non-binding letter of intent with ABRY Partners on June 9. The deal will essentially give ABRY control of the majority of Grande's outstanding equity in exchange for cash and the creation of a new credit facility.

The deal is subject to a successful due diligence review, approval by Grande's board of directors and clearance from various government regulatory agencies.
Grande first went on the block in January 2008, when it said it had hired New York-based investment banker Waller Capital Corp. as an adviser to explore strategic alternatives.

In April this year, the company 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.
Grande has about 147,000 residential customers in Texas, offering services in Austin, San Marcos, Waco and parts of Houston.