Cable One Fights Court Order That Threatens $1.3B Financing Deal
CABO sits 20% above its 52-week low of $9.84 on elevated volume (2.0× avg).
Summary
Cable One is asking a federal judge to lift a temporary restraining order that blocks its $480 million purchase of the remaining 55% of Mega Broadband Investments, arguing the order jeopardizes a $1.3 billion financing package crucial to the deal. The company filed court papers Tuesday, revealing that lender CoBank bought about $90 million of Cable One's revolving loans on the secondary market the day before suing to halt the transaction. CoBank, which holds roughly $1.2 billion of Cable One's debt, claims the company is insolvent and overpaying for MBI. Cable One says it offered to include CoBank in the financing, but CoBank pursued an alternative that would have subordinated other lenders. The restraining order risks collapsing commitments from about 20 private-credit and institutional lenders, leaving Cable One with no viable path to address its $2.45 billion debt load. This follows the 8-K filed October 2 extending the MBI closing date and the October 9 court order blocking the deal.
At the time of this announcement, CABO was trading at $11.84 on NYSE in the Trade & Services sector, with a market capitalization of approximately $66.6M. The 52-week trading range was $9.84 to $168.55. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.