Cogeco raises USD 1.85 bln to finance MetroCast cable ops

Cogeco Communications said that its Atlantic Broadband unit has completed the acquisition of the cable systems owned by Harron Communications, operating under the MetroCast brand name. To finance the USD 1.4 billion purchase and refinance debt, Atlantic Broadband raised USD 1.85 billion worth of secured debt through a combination of term loan B and revolving credit facility financing. Also, as previously announced, The Caisse de depot et placement du Quebec invested USD 315 million for a 21 percent stake in Atlantic Broadband’s holding company. 

Now that the transaction is complete, Atlantic Broadband said it will expand its operations across 11 states on the east coast of the US. On a pro forma basis, the combined company will have 1,250 employees and generate over USD 710 million in combined revenue. MetroCast will keep its brand name for all current TV, internet and phone services until the spring; at that point, it will start offering a suite of enhanced services under the Atlantic Broadband brand name. 

Atlantic Broadband CEO Richard Shea said the company will be welcoming all of MetroCast’s operating employees, including all local GMs.