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Atlantic Broadband Completes Initial Acquisition: Company Will Serve 228,500 Subscribers in Five States
New cable entity will serve 228,500 subscribers in five states
QUINCY, Mass (March 1, 2004) -- Atlantic Broadband LLC, led by cable
veterans Dave Keefe and Ed Holleran, has completed its acquisition of
cable systems serving approximately 228,500 subscribers in Miami Beach,
Western Pennsylvania, the Maryland/Delaware peninsula and West
Virginia. Atlantic will assume management of the systems and the
systems' approximate 450 employees immediately.
Atlantic is an investment venture formed by Keefe, Holleran and ABRY
Partners, a Boston-based private equity firm. ABRY along with its
longtime cable investment partner Oak Hill Capital Partners led the
$270 million round of equity financing, while a bank consortium led by
Merrill Lynch, GE Capital and Societe Generale provided $545 million in
debt financing ($395 million senior/$150 million subordinated). ABRY
Partner Jay Grossman commented, "This sale, which was announced in
September, closed in near record time in large part due to the
enthusiastic reception of the investment community to our business
plan."
The majority of the properties have been upgraded to a minimum of
750 MHz, and most offer cable modem service. Keefe, Atlantic's CEO,
said the company's first priority is the upgrade of the Maryland and
Delaware properties, which do not currently offer high-speed data
service. "We believe that there is a significant opportunity here to
enhance the customer experience and provide a greatly needed cable
modem service." Atlantic President Ed Holleran added, "We are
enthusiastic about continuing Charter's efforts in developing the
digital and cable modem sides of the business, and we have a strong
management team in place to achieve that."
Atlantic Broadband, based in Quincy, Massachusetts, was formed by
ABRY, Keefe and Holleran to acquire and operate cable television
systems offering video and high-speed data services to residential and
commercial customers. ABRY Partners is one of the oldest and largest
private equity firms in the country investing solely in the media and
communications sectors.