Bulletin: Cable One Gets Modest Credit Lift On $400 Million Share Issuance

NEW YORK (S&P Global Ratings) May 19, 2020--S&P Global Ratings said today it views the $400 million issuance of common stock by Phoenix-based internet and cable TV provider Cable One Inc. as modestly positive. We expect the company to use proceeds to pay down the $100 million balance on its $350 million revolving credit facility due 2024 and the remainder for general corporate purposes, which may include strategic acquisitions and investments. Although we view the transaction favorably because the reduction of debt will improve annualized net leverage to about 1.9x from 2.6x as of March 31, 2020, we do not expect Cable One's financial policy to change. We believe the company could push net leverage back above 2.5x longer term

...May 19, 2020 NEW YORK (S&P Global Ratings) May 19, 2020--S&P Global Ratings said today it views the $400 million issuance of common stock by Phoenix-based internet and cable TV provider Cable One Inc. as modestly positive. We expect the company to use proceeds to pay down the $100 million balance on its $350 million revolving credit facility due 2024 and the remainder for general corporate purposes, which may include strategic acquisitions and investments. Although we view the transaction favorably because the reduction of debt will improve annualized net leverage to about 1.9x from 2.6x as of March 31, 2020, we do not expect Cable One's financial policy to change. We believe the company could push net leverage back above 2.5x longer term for acquisitions or debt-financed stock buybacks, given management's stated financial policy, which includes leverage of about 3x. We believe the company will continue to evaluate acquisition opportunities in the cable space, given that more potential...

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