As expected, Cablevision (NYSE: CVC) has bought Bresnan Communications for $1.36 billion. The purchase marks an expansion of the Long Island cable company from its New York footrprint to western territory. Bresnan, the nation’s thirteenth largest MSO, operates in Colorado, Montana, Wyoming and Utah and covers more than 630,000 homes and serve more than 300,000 basic subscribers. Cablevision struck the deal to acquire Bresnan with Providence Equity Partners, which owned a majority stake in the western cable company.
In a complex financial arrangement Cablevision will acquire Bresnan through a newly-formed, “unrestricted subsidiary” of Cablevision with standalone financing. The new unit is expected to be financed using non-recourse debt of approximately $1 billion and an equity investment by Cablevision of less than $400 million. BofA Merrill Lynch and Citi have provided commitments for debt financing for this transaction. The deal is expected to close later this year. Release