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Last Updated: Feb 6, 2017 - 2:32:04 PM |
The future lights up as Cable Bahamas' latest deal focuses on innovation & expansion
NASSAU, Bahamas - Cable Bahamas Ltd today announced that on November 26th, 2013 its wholly-owned subsidiary, Summit Vista Inc, successfully completed the acquisition of Summit Broadband Inc, (Summit), an Orlando-based telecommunications provider for US$53,426,935 in cash. The proceeds for the acquisition were drawn from the senior credit facility that had been established on September 20, 2013. This deal completes the latest stage of a long-term strategy to establish the company as a predominant regional telecommunications company. This follows the previous successful acquisitions of Marco Island Cable, NuVu LLC and US Metropolitan LLC.
In addition to the closing, the Company issued 13,310 shares 6% cumulative redeemable convertible preferred shares with a par value of B$1,000 for 30 months ("Series 7"). It had also planned to issue a 6% preference share PIK, but decided to replace that issue with unsecured promissory notes, with a one-year term bearing 6% interest, totaling US$6,031,000. The four holders of the promissory notes are former shareholders in Summit and include Bahamian entities.
This agreement opens up a world of opportunity for Cable Bahamas.By providing a fibre-optic telecom network throughout The Bahamas and major parts of the Southwest Gulf Coast and Central Florida, Cable Bahamas is able to continually expand, develop and access the latest innovative products and services.This deal puts the company's access to over 1,000,000 homes and customers and provides the stimulus for sustained growth.
"This is a fantastic day for our company," said Anthony Butler, Cable Bahamas' CEO, "and heralds exciting times ahead for everyone associated; our customers, staff and shareholders."In all, this adds another 150 employees and provides additional expertise and knowledge to the already high tech company - further evidence that Cable Bahamas continues on the strategic path to success.
As a commitment to new customers, Anthony Butler stated that, "Our extensive operating experience, together with our varied product portfolio, positions us well to offer a superior telecom experience to our Floridian customers while significantly improving our financial performance.This latest acquisition will significantly broaden the already extensive nature of our local assets and international capabilities."
This deal with Summit completes the company's strategic aims for growth and will benefit all stakeholders.Staff in The Bahamas and the US will be able to share expertise and take advantage of new opportunities, shareholders will see financial growth and further expansion opportunity and, most importantly, the company anticipates that customers will experience new product and service development.
"The Summit team is enthusiastic and eager to join the Cable Bahamas family," said Rick Pardy, Summit President and CEO."We can only see great things in this deal as we continue the march to be a full service provider in Florida. I see a lot of parity between the vision and operations of the company and that should mean positive service, technical and operational results."
Cable Bahamas will have principal offices in Nassau, with satellite offices in Freeport Grand Bahama, Orlando and Bonita Springs, Florida. The company immediately begins the integration of all the Florida operations and to take advantage of the operational efficiencies and synergies. All concerned with Cable Bahamas and this deal are excited and looking forward to a very bright future indeed. There are a number of key projects in Florida that are being tapped for early 2014 and the finalising of the acquisitions paves the way for a major push to conclude the contracts.
RBC Capital Markets acted as Sole Lead Arranger and Bookrunner for the cross-border debt facilities for the transaction and the syndicated term loan involved Scotiabank (Bahamas) Limited, CoBank and RBC Capital Markets. Holland & Knight acted as the U.S. legal advisors to Cable Bahamas.
© Copyright 2013 by thebahamasweekly.com
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