Partnership to drive expansion of fiber
broadband networks to rural and underserved markets
Cable One, Inc. (NYSE: CABO or “Cable One”) today announced it
has entered into a joint venture with affiliates of GTCR LLC
(“GTCR”), Stephens Capital Partners LLC (“Stephens”), The Pritzker
Organization, L.L.C. (“TPO”), and certain members of the management
team for the venture (collectively the “Investors”) to support the
accelerated growth of Clearwave Fiber LLC (“Clearwave Fiber”).
Clearwave Fiber is a newly formed entity that holds Cable One’s
subsidiary Clearwave Communications and certain fiber assets of
Cable One’s subsidiary Hargray Communications. With the formation
of the joint venture, Clearwave Fiber intends to invest heavily in
bringing Fiber-to-the-Premise (“FTTP”) service to residential and
business customers across its existing footprint and near-adjacent
areas.
The joint venture reflects a shared commitment from Cable One
and the Investors to provide fast and reliable connectivity via
FTTP internet to underserved markets and will allow for more rapid
expansion of fiber internet to homes and businesses in small cities
and big towns. Cable One owns a majority of Clearwave Fiber and the
Investors are committed to make substantial cash investments to
support the acceleration of Clearwave Fiber’s expansion.
Clearwave Fiber will be led by Executive Chairman Michael
Gottdenker and CEO David Armistead, both of whom were part of
Hargray’s executive leadership team from 2007 until its 2021 sale
to Cable One, providing continuity of proven leadership and a
continued commitment to Cable One’s shared culture, purpose, and
values.
“This strategic investment will help accelerate the deployment
of fiber-based broadband services to a range of markets, including
underserved areas of the country,” said Michael Gottdenker,
Executive Chairman of Clearwave Fiber. “Our team is motivated by
our shared core values of customer service and improving lives
through connectivity and is excited to bring fast and reliable
Clearwave Fiber broadband to homes and businesses across the
country. We are thrilled to welcome GTCR, Stephens, and TPO to the
Clearwave Fiber family and look forward to our continued
partnership with Cable One.”
“We look forward to supporting and sharing in Clearwave Fiber’s
growth over the coming years while remaining focused on our primary
business, increasing penetration rates, integrating recently
acquired companies and driving higher margins and greater free cash
flow,” said Julie Laulis, Cable One President and CEO. “We did not
take lightly our choice of partners in this transaction and are
excited to be working with like-minded individuals who share our
core principles.”
Transaction Details
The Investors will make substantial cash investments to finance
Clearwave Fiber’s expansion and will be represented on the Board of
Directors for the venture and have certain governance rights. Cable
One will receive no cash proceeds from the transaction and will own
a majority of Clearwave Fiber. The operations contributed to the
joint venture by Cable One represent approximately 3% of Cable
One’s consolidated revenues for the three months ended September
30, 2021.
Bank Street Group acted as lead financial advisor to Cable One,
and Ernst & Young advised on the financial and operational
carve-out of Clearwave Fiber. Cravath, Swaine & Moore LLP and
Cahill Gordon & Reindel LLP acted as legal advisors to Cable
One. Kirkland & Ellis LLP, Davis Polk & Wardwell LLP and
Covington & Burling LLP acted as legal advisors to the
Investors on this transaction.
About Cable One
Cable One, Inc. (NYSE:CABO) is a leading broadband
communications provider committed to connecting customers and
communities to what matters most. Through Sparklight® and the
associated Cable One family of brands, the Company serves more than
1.1 million residential and business customers in 24 states. Over
its fiber-optic infrastructure, the Cable One family of brands
provide residential customers with a wide array of connectivity and
entertainment services, including Gigabit speeds, advanced WiFi and
video. For businesses ranging from small and mid-market up to
enterprise, wholesale and carrier, the Company offers scalable,
cost-effective solutions that enable businesses of all sizes to
grow, compete and succeed.
About GTCR
Founded in 1980, GTCR is a leading private equity firm focused
on investing in growth companies in the Healthcare, Financial
Services & Technology, Technology, Media &
Telecommunications, and Growth Business Services industries. The
Chicago-based firm pioneered The Leaders Strategy™ - finding and
partnering with management leaders in core domains to identify,
acquire and build market-leading companies through transformational
acquisitions and organic growth. Since its inception, GTCR has
invested more than $20 billion in over 250 companies. For more
information, please visit www.gtcr.com.
About Stephens Capital Partners
Stephens Capital Partners LLC (“SCP”) is the principal investing
arm of the Warren A. Stephens family and Stephens Inc. SCP
identifies opportunities to work with industry-leading management
teams with a long-term perspective. SCP provides public and private
companies with capital for purposes of growth, recapitalization,
and leveraged buyouts.
Stephens Inc. is a full service investment banking firm
headquartered in Little Rock, Arkansas serving a broad client base
of corporations, state and local governments, financial
institutions, institutional and individual investors throughout the
United States and overseas. The firm is a member of the New York
Stock Exchange and SIPC. For more information, see
www.stephens.com.
About The Pritzker Organization
The Pritzker Organization is the merchant bank for the business
interests of the Tom Pritzker family. TPO is focused on partnering
with exceptional leaders to create value across a wide range of
industries. TPO looks for opportunities where it can create value
for the family’s interests and our partners and colleagues over a
significant time horizon. For more than 60 years, TPO has overseen
and guided the development of dozens of portfolio companies across
a wide variety of industries, including manufacturing, logistics,
life sciences, hospitality, healthcare and services. Notable
businesses include Hyatt Hotels, Triton Container, the Marmon
Group, and Hargray Communications. Recent control investments
include TMS International, Lithko Contracting, KBP Investments,
Mammoth Holdings and STV Inc. In addition to its core strategy of
building businesses over the long term, TPO is also active in
special situations, advising the family’s interests in the
deployment of capital across a wide spectrum of industries and
across every tier of the balance sheet, from senior debt to equity.
Additional information can be found at www.pritzkerorg.com.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING
STATEMENTS
This release contains “forward-looking statements” within the
meaning of the Private Securities Litigation Reform Act of 1995.
Actual results may differ materially from those expressed or
implied by these statements. You can generally identify
forward-looking statements by the words “anticipate,” “believe,”
“can,” “continue,” “could,” “estimate,” “expect,” “forecast,”
“goal,” “intend,” “may,” “might,” “objective,” “outlook,” “plan,”
“potential,” “predict,” “projection,” “seek,” “should,” “target,”
“trend,” “will,” “would” or the negative version of these words or
other comparable words. Any statements regarding the growth
expectations and opportunities for Clearwave Fiber and any other
statements that are not historical facts are forward-looking
statements. Such forward-looking statements are subject to various
risks, uncertainties, assumptions, or changes in circumstances that
are difficult to predict or quantify. Accordingly, there are or
will be important factors that could cause actual outcomes or
results to differ materially from those indicated in these
statements. These factors include, but are not limited to, factors
described under “Risk Factors” in Cable One’s annual report on Form
10-K for the period ended December 31, 2020 and its quarterly
report on Form 10-Q for the period ended September 30, 2021 and
Cable One’s other filings with the Securities and Exchange
Commission. Each forward-looking statement contained herein speaks
only as of the date of this release, and Cable One undertakes no
obligation to update or revise any forward-looking statements
whether as a result of new information, future developments or
otherwise, except as required by law.
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version on businesswire.com: https://www.businesswire.com/news/home/20220103005236/en/
Trish Niemann Senior Director, Corporate Communications
602-364-6372 patricia.niemann@cableone.biz
Steven Cochran Chief Financial Officer
investor_relations@cableone.biz
Cable One (NYSE:CABO)
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