Cablevision wraps up purchase of Bresnan
Cablevision has completed its acquisition of Bresnan Communications in a deal that was valued at $1.365 billion.
Cablevision, the nation's fifth-largest cable operator with a New York metropolitan footprint, emerged as the winning bidder for Bresnan back in June.
With the completion of the deal, Bresnan is now a newly formed subsidiary of Cablevision. Cablevision gained approximately 297,000 basic cable TV subscribers and more than 629,000 homes passed in Montana, Wyoming, Colorado and Utah.
Cablevision chief operating officer Tom Rutledge will oversee the new subsidiary.
"We have tremendous respect for the Bresnan management team and employees and the quality they have provided for many years to a growing base of cable, high-speed Internet and phone customers. We look forward to continuing this history, this strong commitment to localism and local operations, and to delivering even more features and value, including faster Internet, more HD programming and other meaningful enhancements to our customers in these markets."
Earlier this year, Bresnan said it hoped to have DOCSIS 3.0 in 70 percent of its footprint by the end of this year, but so far there haven't been any wideband-related announcements.
Also this year, Bresnan finished upgrading its MPLS network with gear from Juniper Networks.
The Bresnan acquisition was structured as an independent, unrestricted subsidiary of Cablevision and was financed using an equity contribution by Cablevision of approximately $400 million and non-recourse debt of approximately $1 billion.
The subsidiary's capital structure consists of a $75 million revolving credit facility, a $765 million term loan facility and $250 million 8 percent senior notes due in 2018. Neither Cablevision nor any of its subsidiaries, other than the subsidiary, would have any obligations or liability with respect to the new credit facility or senior notes.