Cable One To Acquire NewWave For $735 Mln - Quick Facts

(RTTNews) - Cable One, Inc. (CABO) announced it has entered into a definitive agreement to acquire NewWave Communications for $735 million in cash. NewWave is a cable operator providing high-speed data, video and voice services to residential and business customers throughout non-urban areas of Arkansas, Illinois, Indiana, Louisiana, Mississippi, Missouri and Texas.

The transaction is expected to be financed with $650 million of senior secured loans and cash on hand. After giving effect to the transaction, Cable ONE would have had last quarter annualized revenues of approximately $1 billion for the third quarter of 2016, and adjusted EBITDA margins of approximately 41% prior to the impact of annual cost synergies, which Cable ONE estimates at approximately $24 million. The acquisition is expected to provide estimated tax benefits of approximately $152 million on a present value basis.

NewWave's network passes nearly 428,000 homes and has more than 214,000 residential primary service units and 31,000 business PSUs. Together, Cable ONE and NewWave will serve more than 1.2 million PSUs.