BC Partners and CPP Investment Board have completed the previously announced purchase of the Cequel Communications Holdings for $6.6 billion. Cequel Communications does business as Suddenlink Communications.
Cequel Communications Holdings, LLC, which does business as Suddenlink Communications (“Suddenlink” or “the Company”), announced today that BC Partners and CPP Investment Board (“CPPIB”), in partnership with Suddenlink’s management team, led by Chairman and CEO Jerry Kent, have completed the previously announced purchase of the Company for $6.6 billion.
Suddenlink’s enterprise value of $6.6 billion includes $1.985 billion of total equity invested by BC Partners, CPPIB, and certain members of Suddenlink management, plus incremental debt of $500 million and assumption of existing net liabilities. Proceeds were used to acquire the ownership stake of all holders of Suddenlink’s preferred and common equity, led by Goldman Sachs Capital Partners and including Quadrangle, Oaktree Capital Management, and The Jordan Company.
“The timely closing of this acquisition marks a new and exciting chapter in our company’s history,” said Suddenlink’s Chairman and CEO Jerry Kent. “With fresh, forward-looking capital, new investors, and a talented team of over 6,000 people, we are in a great position to continue serving our customers with excellence and delivering strong operating results.”
For Suddenlink in this transaction, LionTree Advisors, a division of EM Securities, and Goldman Sachs acted as financial advisors; Paul Hastings LLP and Seyfarth Shaw LLP acted as legal advisors. For BC Partners and CPPIB, Credit Suisse acted as financial advisor; Latham & Watkins LLP and Wachtell, Lipton, Rosen & Katz LLP acted as legal advisors. CPPIB was also separately advised by Torys LLP. For existing equity holders, Fried, Frank, Harris, Shriver & Jacobson LLP acted as legal advisor.
A current report related to this transaction will be posted today to the Company’s website at suddenlink.com.
This news release contains “forward-looking statements,” within the meaning of the Private Securities Litigation Reform Act of 1995 that involve a number of risks and uncertainties. Forward looking statements, which are based on management’s current expectations, are generally identifiable by the use of terms such as “may,” “will,” “expects,” “believes,” “intends,” “anticipates” and similar expressions. Because these forward-looking statements involve known and unknown risks and uncertainties, there are important factors that could cause actual results, events or developments to differ materially from those expressed or implied by these forward-looking statements. Readers are cautioned not to place undue reliance on such forward-looking statements. All information is current as of the date this press release is issued, and Suddenlink undertakes no duty to update this information.
Suddenlink is the seventh-largest cable system operator in the United States and the leading television and Internet service provider in its markets. Suddenlink offers television, high-speed Internet and telephony services to over 1.4 million residential and commercial customers, primarily in Texas, West Virginia, North Carolina, Oklahoma, Arkansas and Louisiana. The Company’s network passes three million homes, is interconnected by a national backbone, and has been upgraded to state-of-the-art technology through the Company’s recently completed, $350 million “Project Imagine.”
About BC Partners
BC Partners (bcpartners.com) is a leading private equity firm with advised funds of €12.6 billion ($16.4 billion). Established in 1986, BC Partners has played an active role in developing the European buy-out market for 25 years. BC Partners executives operate as an integrated team through the firm’s offices in Europe and North America, acquiring and developing businesses to create value in partnership with management. Since inception, BC Partners has completed 80 investments in companies with a total enterprise value of €79 billion. The acquisition of Suddenlink is the second investment from BC Partners’ ninth fund which held its final closing on €6.7 billion in February 2012. BC Partners has significant expertise in the cable sector. BC Partners Funds own Com Hem, a leading supplier of television, broadband and telephony in Sweden. Previously, BC Partners led the creation of Unitymedia, Europe’s third largest cable operator, following a number of transformational and value enhancing acquisitions. Unitymedia was sold to Liberty Global in 2009.
CPP Investment Board (cppib.ca) is a professional investment management organization that invests the funds not needed by the Canada Pension Plan to pay current benefits on behalf of 18 million Canadian contributors and beneficiaries. In order to build a diversified portfolio of CPP assets, CPPIB invests in public equities, private equities, real estate, inflation-linked bonds, infrastructure and fixed income instruments. Headquartered in Toronto, with offices in London and Hong Kong, CPPIB is governed and managed independently of the Canada Pension Plan and at arm’s length from governments. At September 30, 2012, the CPP Fund totaled C$170.1 billion of which C$28.1 billion was invested in private equities.
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