Mega Broadband Investments Intermediate I LLC

Overview Credit context and assumptions Base-case expectations Dominant provider of broadband services in its markets. Competition from incumbent phone companies and cable providers that have overbuilt the company?s network. High barriers to entry given capital spending requirements and rights of way. Participation in lower-income markets that have kept broadband penetration rates below incumbent peers. Good revenue visibility from increased demand for high-margin broadband. Lack of meaningful scale resulting in programming cost disadvantages when compared with the larger cable operators. High financial leverage above 5x and limited free operating cash flow (FOCF) on elevated capital spending. high-margin broadband for at least the next two years. The increasing importance of high-speed data (HSD) should enable Mega Broadband Investments Intermediate I LLC (d/b/a

...Price increases and subscriber growth will drive a continued increase in high-margin broadband for at least the next two years. The increasing importance of high-speed data (HSD) should enable Mega Broadband Investments Intermediate I LLC (d/b/a Vyve) to continue monetizing demand as customers migrate to faster tiers to enable video streaming on multiple devices, online gaming...

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