ABRY Partners and Oak Hill Capital Exit Atlantic Broadband
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ABRY Partners and Oak Hill Capital Exit Atlantic Broadband

Cogeco Cable has entered into an agreement to acquire all of the shares of Atlantic Broadband, an independent cable system operator and a portfolio company of ABRY Partners and Oak Hill Capital Partners.  The transaction is valued at $1.36 billion, approximately 8.3x estimated 2013 EBITDA.

Atlantic Broadband was formed in 2003 and is the 14th largest cable television system operator in the United States. It operates cable systems in Pennsylvania, Florida, Maryland, Delaware and South Carolina and serves about 252,000 customers with analog and digital video, as well as high speed internet and telephony services.  The company is based in Johnstown, PA (www.atlanticbb.com).

“This acquisition marks an attractive entry point into the US market for Cogeco Cable. There are sizable opportunities for growth including: increasing the penetration of the small and mid-sized business segment, and maximizing the bundling potential of services in the residential sector.  We are very pleased to welcome all the employees of Atlantic Broadband into our organization,” said Louis Audet, President and CEO of Cogeco Cable.  Pro forma for the transaction, Cogeco Cable, will serve more than 1.1 million basic video customers across Canada and the United States.

Cogeco Cable intends to finance the transaction through a combination of cash on hand, a draw-down on its existing revolving term facility of approximately $550 million and $660 million of borrowings under committed non-recourse debt financing at Atlantic Broadband. The pro-forma consolidated debt to EBITDA level of Cogeco Cable will be 3.1x at closing.

Cogeco Cable is a telecommunications and hybrid fiber coaxial cable system operator in Ontario and Quebec. The company provides its customers with audio, analog and digital video, as well as high speed internet and telephony services.  The company is based in Montreal (www.cogeco.ca).

ABRY Partners invests in the media, communications and information sectors. ABRY is currently investing ABRY Partners VII (a $1.6 billion fully-capitalized traditional private equity fund), ABRY Senior Equity III (a $750 million fully-capitalized senior equity/mezzanine fund) and ABRY Advanced Securities Fund II (a $1.2 billion fully-capitalized senior debt fund). The firm is located in Boston, MA (www.abry.com).

Oak Hill Capital Partners is a private equity firm with more than $8 billion of committed capital from entrepreneurs, endowments, foundations, corporations, pension funds and global financial institutions. Robert Bass is the lead investor. Over a period of more than 24 years, the professionals at Oak Hill Capital Partners and its predecessors have invested in more than 70 private equity transactions. The firm is located in Stamford, CT (www.oakhillcapital.com).

Gleacher and Company Securities is acting as exclusive financial advisor to Cogeco Cable.  Bank of America Merrill Lynch is serving as sole lead arranger and providing the committed debt financing at Atlantic Broadband.

© 2012 PEPD • Private Equity’s Leading News Magazine • 12-6-12

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