Bulletin: Cogeco Communications Inc. Ratings Are Unaffected By Subsidiary's Announced Acquisition

TORONTO (S&P Global Ratings) July 10, 2017--S&P Global Ratings said today that its ratings and outlook on Montreal-based cable provider Cogeco Communications Inc. (BB+/Stable/--) are unchanged following Cogeco's announcement today that its U.S. subsidiary, Atlantic Broadband (ABB; Cogeco Communications (USA) Inc.; BB-/Stable/--) has entered a definitive agreement with privately-held Harron Communications L.P. to purchase all of its cable systems operating under the MetroCast brand name for US$1.4 billion (about 11.5x reported EBITDA). MetroCast is a local cable operator in the Eastern U.S., providing internet, video, and telephony services in New Hampshire, Maine, Pennsylvania, Maryland, and Virginia, regions complementary to ABB's operations. The transaction is subject to customary conditions and S&P Global Ratings expects it to close in January 2018. We

...TORONTO (S&P Global Ratings) July 10, 2017--S&P Global Ratings said today that its ratings and outlook on Montreal-based cable provider Cogeco Communications Inc. (##+/Stable/--) are unchanged following Cogeco's announcement today that its U.S. subsidiary, Atlantic Broadband (ABB; Cogeco Communications (USA) Inc.; ##-/Stable/--) has entered a definitive agreement with privately-held Harron Communications L.P. to purchase all of its cable systems operating under the MetroCast brand name for US$1.4 billion (about 11.5x reported EBITDA). MetroCast is a local cable operator in the Eastern U.S., providing internet, video, and telephony services in New Hampshire, Maine, Pennsylvania, Maryland, and Virginia, regions complementary to ABB's operations. The transaction is subject to customary conditions and S&P Global Ratings expects it to close in January 2018. We expect the purchase to be funded by about US$1.1 billion of bank debt (issued at ABB and non-resource to Cogeco) and a US$315 million...

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