MONTREAL and QUINCY, MA – Cogeco Communications subsidiary Atlantic Broadband has wrapped up its acquisition of the MetroCast cable systems, expanding its operations across 11 states on the U.S. east coast.
The US$1.4 billion deal was first announced in July 2017. At that time, the company said that MetroCast's networks passed close to 236,000 homes and businesses in New Hampshire, Maine, Pennsylvania, Maryland and Virginia and served approximately 120,000 Internet, 76,000 video and 37,000 telephony customers.
As of now, 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 this spring, MetroCast will offer a suite of enhanced services under the Atlantic Broadband brand name.
Atlantic Broadband raised US$1.85 billion of secured debt through a combination of term loan B and revolving credit facility financings as well as US$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, reads the company’s news release. These proceeds were used to finance the US$1.4 billion purchase price and to refinance Atlantic Broadband's existing debt.
"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 Cogeco Communications president and CEO Louis Audet, in the release. "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."
