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Cable Technology Feature Article

March 05, 2010

ABRY Partners Likely to Buy RCN for $1.2B

By Paula Bernier, Executive Editor, IP Communications Magazines

RCN (News - Alert) Corp. is being purchased for about $1.2 billion.
The competitive broadband services provider and ABRY Partners today disclosed it has forged a definitive agreement for an investment fund managed by ABRY to acquire RCN in a deal that involves a cash payment and the assumption of debt. 
However, RCN may solicit proposals from third parties for 40 days through April 14.
The ABRY-RCN deal is expected to close in the second half. This is subject to receipt of stockholder approval, regulatory approvals, including the receipt of required consents and approvals of the FCC (News - Alert), as well as satisfaction of other customary closing conditions. The transaction is not subject to any financing condition.
The transaction has fully committed financing, consisting of a combination of equity to be invested by ABRY and debt financing to be provided by SunTrust Robinson Humphrey, Inc., GE Capital, Societe Generale and certain affiliates.
As a result, each share of RCN common stock will be entitled to receive $15 in cash, representing a 43 percent premium over RCN’s average closing share price during the past 30 trading days and a 22 percent premium over the closing share price on March 4.

Edited by Marisa Torrieri