Cogeco Communications Inc. on January 4 announced that its subsidiary Atlantic Broadband has completed the acquisition of cable systems owned by Harron Communications L.P. and is operating under the MetroCast brand name.
Atlantic Broadband raised $1.85 billion of secured debt through a combination of term loan B and revolving credit facility financings as well as $315 million of equity through an investment by Caisse de dépôt et placement du Québec (CDPQ) for a 21% interest in Atlantic Broadband’s holding company. These proceeds were used to finance the $1.4 billion purchase price and to refinance Atlantic Broadband’s existing debt.
With the completion of this transaction, Atlantic Broadband will expand its operations across 11 states on the East Coast of the U.S. On a pro forma basis, the combined company will have 1,250 employees and will generate over $710 million in combined revenue.
As of January 4, MetroCast will maintain its existing brand name and will continue to offer its current TV, internet and phone services to business and residential customers. Starting in the spring, MetroCast will begin offering a suite of enhanced services under the Atlantic Broadband brand name.
“After our highly successful acquisition and integration of the MetroCast Connecticut system more than two years ago, we understand the significant residential and business growth potential in this business,” said Richard Shea, Atlantic Broadband president and chief executive officer.
“A core strength of MetroCast has been its excellent operational and service team. We are pleased to welcome all MetroCast operating employees, including the local general managers, to the Atlantic Broadband family,” said Shea. “We look forward to working together to launch new and improved TV, internet and phone services to residential and business customers in these markets.”
“This acquisition establishes Atlantic Broadband as a strategic platform in the U.S. with a diverse footprint extending up the East Coast from Florida to Maine,” said Louis Audet, president and chief executive officer of Cogeco Communications Inc., the parent company of Atlantic Broadband.
“It has been a great opportunity to partner with CDPQ for this transaction and we look forward to working with them to continue to grow this business in the U.S.”