Copyright 2003 The Deal, L.L.C.
Daily Deal/The Deal
September 4, 2003 Thursday
Charter Communications Inc., the St. Louis-based cable company controlled by Microsoft Corp. co-founder Paul Allen, said late Wednesday it agreed to sell cable systems serving 235,000 subscribers to Atlantic Broadband LLC for $765 million in cash.
The deal, announced after the market close Wednesday, Sept. 3, comes several weeks after Charter decided to shelve a tender offer to refinance more than $1 billion in senior convertible notes.
The company cited changes in the capital markets as the reason for its decision to abandon the tender offer.
The agreement Wednesday continues Charter's strategy of divesting geographically nonstrategic assets to raise cash to pay down its crushing debt load, which stands at more than $15 billion.
"Proceeds from this cash sale will be used to repay bank debt and fund future capital expenditures," Charter CEO Carl Vogel said in a statement. The systems to be sold serve subscribers in Delaware, Florida, Maryland, New York, Pennsylvania and West Virginia.
Atlantic Broadband is controlled by David Keefe, Edward Holleran Jr. and private equity firm ABRY Partners.
Cable brokerage specialists Daniels & Associates represented Charter in the deal, which is expected to close in the first half of 2004.