Bulletin: Cable One Inc. Amends Partnership Agreement With GTCR LLC

This report does not constitute a rating action. NEW YORK (S&P Global Ratings) Dec. 20, 2024--S&P Global Ratings today said that despite the increase in Phoenix-based incumbent cable provider Cable One Inc. 's (BB/Negative/--) leverage to amend its partnership agreement with GTCR LLC, the revision provides Cable One with enhanced financial flexibility to acquire the remaining 55% equity stake in Mega Broadband Investments Intermediate I LLC (MBI) that it does not already own. The amendment defers the closing of any put exercise to no earlier than Oct. 1, 2026, providing Cable One with more time to decrease leverage. In addition, it provides Cable One with a new option to call the 55%, exercisable starting in the third quarter of 2025.

...December 20, 2024 This report does not constitute a rating action. NEW YORK (S&P Global Ratings) Dec. 20, 2024--S&P Global Ratings today said that despite the increase in Phoenix-based incumbent cable provider Cable One Inc.'s (##/Negative/--) leverage to amend its partnership agreement with GTCR LLC, the revision provides Cable One with enhanced financial flexibility to acquire the remaining 55% equity stake in Mega Broadband Investments Intermediate I LLC (MBI) that it does not already own. The amendment defers the closing of any put exercise to no earlier than Oct. 1, 2026, providing Cable One with more time to decrease leverage. In addition, it provides Cable One with a new option to call the 55%, exercisable starting in the third quarter of 2025. However, as part of the agreement, Cable One paid $250 million to GTCR, financed with $175 million of revolver borrowings and $75 million of cash. That amount, combined with $100 million in proceeds from an earlier debt-financed dividend at...

Bulletin