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Last Updated: Feb 13, 2017 - 1:45:37 AM |
 NASSAU, The Bahamas - Cable Bahamas Ltd. announced today that it has successfully raised $114.5 million via the issuance of preferred shares. The total includes $103.5 million in Bahamian dollars with an annual dividend of 5.75% designated as Series 6 and the remaining $11.0 million denominated in US dollars with an annual dividend of 6.25% designated as Series 8 shares. Both series have a ten-year term and rank pari passu with the Company's Series 7 preferred shares.
The proceeds of the offering were used partially to redeem the Company's Series 4 and Series 5 Preference Shares totaling $60 million. The remaining $54.5 million will be utilized to settle short-term commitments and fund the Company's expansion.
Mr. Anthony Butler President & CEO noted, "The success of the offering, the largest private debt placement ever by a Bahamian company, sets Cable Bahamas in a strong financial position. We are looking forward to great things and we are poised to take advantage of the growth opportunities before us. We'd like to express our appreciation to the investing community for once again supporting our Company."
Mr. Michael Anderson, President of Royal Fidelity, the financial advisor and placement agent for the offerings, noted that Royal Fidelity was pleased to have represented Cable Bahamas and said, "The ability to raise $114.5 million in The Bahamas capital markets reflects both the support for Cable Bahamas' initiatives in Florida as well as the huge level of confidence which the Company has created over its 19 years in business." He also noted that the raising of $114.5 million in preferred shares represented a major milestone for both Cable Bahamas and the Bahamian capital markets, as it was approximately $70 million higher than the previous largest offering of $45 million in 2013.
Barry Williams, Senior Vice President of Finance indicated, "The Company was very pleased with the support that The Bahamas market has once again demonstrated in the Company. Our existing preferred shareholders responded resoundingly with approximately 95% rolling their existing holdings, some taking increased positions in the new offering; and we are always pleased to welcome new investors into our portfolio." In all, the offering was oversubscribed by $14.5 million. Mr. Williams also noted, "With the preferred financing now completed and in place, we are well positioned to complete our expansion programs inclusive of our Florida growth opportunities and any Bahamian opportunities that may arise in the near term."
As noted in previous press disclosures, the Florida acquisitions are a significant strategic growth engine for Cable Bahamas. The market areas of focus in Florida provide the Company with access to over 3.2 million people, 1.5 million households, 121,000 hotel rooms and a myriad of commercial establishments. In January 2014 the Company merged all of the Florida companies acquired in 2013 under one operating umbrella company, Summit Broadband Inc., headquartered in Orlando, and operating in central and southwest Florida.
The funding will support the Company achieving its 2014 forecast revenues of $154 million, which will represent a $35 million, or 29%, increase, over the 2013 audited results. The 2014 forecast EBITDA is also expected to reach $59 million, which will be an increase of $9 million or 18% over 2013. For the first quarter of 2014 total revenues reached over $37 million, an increase of $9 million over the same period of 2013 and EBITDA for the first quarter reached $14 million and was $2 million or 17% higher than the first quarter of 2013.
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