Cable One, Inc. announced an amendment to its strategic investment in Mega Broadband Investments Holdings LLC (MBI), providing enhanced timing flexibility for a potential full ownership acquisition. Cable One currently holds a 45% equity interest in MBI.
As part of the amended agreement, Cable One paid $250 million to other MBI equity holders, and those holders also received proceeds from $100 million of new MBI debt. These combined $350 million payments will reduce the future purchase price for the remaining 55% interest.
The amended terms allow Cable One to control the timing for acquiring the remaining MBI interest, with any such acquisition occurring no earlier than October 1, 2026. The estimated purchase price for the remaining equity is between $410 million and $550 million, with MBI's total net indebtedness at acquisition estimated between $845 million and $895 million, based on a potential October 1, 2026 closing.
MBI reported total revenues of approximately $320 million for the 12 months ended September 30, 2024. Cable One's CFO, Todd Koetje, stated that the company's net leverage ratio is expected to peak in the fourth quarter of 2024 following this transaction, indicating a near-term impact on the balance sheet.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.