Time Warner Cable agrees to acquire Alinda Capital-backed DukeNet Communications

Time Warner Cable said Monday that it has agreed to buy DukeNet Communications for $600 million in cash. The sellers are Duke Energy Corp. and Alinda Capital Partners.The transaction is expected to close in the first quarter of 2014. RBC Capital Markets advised Duke Energy and Alinda in the deal. Based in Charlotte, NC, DukeNet is a regional fiber optic network company serving customers in North Carolina and South Carolina, as well as five other states in the Southeast.

PRESS RELEASE

NEW YORK, Oct. 7, 2013 /PRNewswire/ — Time Warner Cable Inc. (NYSE: TWC) today announced that it has entered into a definitive agreement with Duke Energy Corporation (NYSE: DUK) and investment funds managed by Alinda Capital Partners to buy DukeNet Communications, LLC for $600 million in cash, including the repayment of debt.
DukeNet, based in Charlotte, N.C., is a regional fiber optic network company serving customers in North Carolina and South Carolina, as well as five other states in the Southeast. With a fiber optic network of over 8,700 miles, DukeNet provides data and high-capacity bandwidth services to wireless carrier, data center, government, and enterprise customers. Duke Energy owns 50 percent of DukeNet. The Alinda investment funds own the remaining 50 percent.
“Business Services is a key growth area for Time Warner Cable and this acquisition will greatly enhance our already growing fiber network to better serve customers, particularly those in key markets in the Carolinas,” said Phil Meeks, Executive Vice President and COO of Business Services for Time Warner Cable. “This acquisition will help us expand our fiber footprint at a price that is consistent with our disciplined approach to M&A, accounting for expected synergies and tax benefits.”
“This is a positive transaction for Duke Energy,” said Marc Manly, president of Duke Energy’s Commercial Business group. “The sale completes Duke Energy’s transition out of DukeNet, which although a growing operation, is a non-core business to our company.”
“We are pleased to have been co-owner of DukeNet and partner with Duke Energy through a very exciting time in the development of telecommunications infrastructure generally, and DukeNet’s business specifically,” said Alinda’s managing partner, Chris Beale. “We believe DukeNet is well-positioned to continue its record of strong growth.”
The transaction, which is expected to close in the first quarter of 2014, is subject to various customary closing conditions, including receipt of regulatory approvals. RBC Capital Markets, LLC advised Duke Energy and Alinda on the sale of DukeNet, and Moore & Van Allen PLLC provided legal counsel. Edwards Wildman Palmer LLP provided legal counsel to Time Warner Cable.
About Time Warner Cable
Time Warner Cable Inc. (NYSE: TWC) is among the largest providers of video, high-speed data and voice services in the United States, connecting more than 15 million customers to entertainment, information and each other. Time Warner Cable Business Class offers data, video and voice services to businesses of all sizes, cell tower backhaul services to wireless carriers and enterprise-class, cloud-enabled hosting, managed applications and services. Time Warner Cable Media, the advertising arm of Time Warner Cable, offers national, regional and local companies innovative advertising solutions. More information about the services of Time Warner Cable is available at www.twc.com, www.twcbc.com and www.twcmedia.com.
About Duke Energy
Duke Energy is the largest electric power holding company in the United States with more than $110 billion in total assets. Its regulated utility operations serve approximately 7.2 million electric customers located in six states in the Southeast and Midwest. Its commercial power and international business segments own and operate diverse power generation assets in North America and Latin America, including a growing portfolio of renewable energy assets in the United States. Headquartered in Charlotte, N.C., Duke Energy is a Fortune 250 company traded on the New York Stock Exchange under the symbol DUK. More information about the company is available at: www.duke-energy.com.
About Alinda Capital Partners
Alinda Capital Partners is one of the world’s largest infrastructure investment firms with approximately $7.8 billion in equity commitments to infrastructure investments. Alinda has invested in infrastructure businesses that operate in 31 states in the United States as well as in Canada, the United Kingdom, Germany, the Netherlands, Austria, Belgium and Luxembourg. These businesses serve 100 million customers annually in more than 400 cities globally and employ more than 15,000 people. Alinda’s investors are predominantly pension funds for public sector and private sector workers and include some of the largest institutional investors in the world. Alinda and its subsidiaries have two offices in the United States — in Greenwich, Conn., and Houston — and two offices in Europe — London and Dusseldorf, Germany. More information about Alinda is available at: www.alinda.com.