Cable One in Advanced Financing Talks With GTCR and Lenders
CABO sits 22% above its 52-week low of $9.9.
Summary
Cable One is in advanced talks with private-equity firm GTCR and its existing and new lenders on financing to address its balance sheet, the company said Friday. The potential deals would include raising fresh capital for the broadband provider, though no definitive agreements have been reached. This follows a $1.16 billion Q2 net loss, a $700 million draw on its revolver, and an S&P downgrade last week that pushed it deeper into junk territory. The company faces an Oct. 9 deadline to complete its acquisition of the remaining 55% stake in Mega Broadband Investments, which has added pressure to its credit ratings. With roughly $2.3 billion in debt maturing in 2028 and shares down 87% over six months, the financing talks are critical to avoid a liquidity crunch. Watch for a definitive agreement announcement before the Oct. 9 deadline.
At the time of this announcement, CABO was trading at $12.11 on NYSE in the Trade & Services sector, with a market capitalization of approximately $68.7M. The 52-week trading range was $9.90 to $180.74. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.