All of the shares of Atlantic Broadband Group, LLC, a cable system operator, have been sold to Cogeco Cables, the second-largest cable system operator in terms of Basic Cable service customers served in cities of Ontario and Québec, Canada.

Cogeco Cables offers analog and digital television, telephony services and high-speed Internet. The transaction has been valued at $1.36 billion.

Cogeco Cables financed the transaction by drawing-down on its existing revolving term facility of approximately $550 million, cash-on-hand and borrowings of $600 million under committed non-recourse debt financing at Atlantic Broadband.

At closing, the pro-forma consolidated debt to EBITDA level of Cogeco Cable is 3.1x.

"This is a very important day for Cogeco Cable as this acquisition marks our entry into the United States market. There are sizable opportunities for growth, including increasing the penetration of the small and mid-sized business segment and maximizing the bundling potential of services in the residential sector. I am very pleased to confirm that Ed Holleran, one of Atlantic Broadband’s Founders, will continue to lead our U.S. operations team as chief executive officer,” said Louis Audet, president and chief executive officer at Cogeco Cable.

“I would also like to welcome all Atlantic Broadband employees to the extended Cogeco family,” Audet added.

All the three Atlantic Broadband Group, LLC, ABRY Partners and Oak Hill are based in the U.S. while Cogeco is a Canada-based cable system operator. ABRY Partners and Oak Hill both are private equity firms.

Cogeco Cables is aiming at major expansion with this acquisition, and by acquiring Atlantic Broadband Group, Cogeco Cables has now entered U.S. markets and will be able to maximize the bundling potential of services in the residential sector.

Its entry into the U.S. markets has the potential to increase the penetration of the small and mid-sized business segment.

Cogeco Cables has gained majorly by the move. It will now be serving more than 2.45 million primary service units (PSU) in Canada and in the U.S.

For Cogeco Cables, Stikeman Elliott S.E.N.C.R.L., s.r.l, Simpson Thacher & Bartlett LLP and Wiley Rein LLP were the legal advisors. Gleacher and Company Securities, Inc. acted as financial advisor. Bank of America Merrill Lynch served as sole lead arranger and provided the committed debt financing at Atlantic Broadband.

Kirkland & Ellis LLP were the legal advisor to ABRY Partners. The sale process was handled by Credit Suisse.

Atlantic Broadband was formed in 2003 in Quincy, Massachusetts. It operates cable systems in Southern Florida, Western Pennsylvania, Maryland, South Carolina and Delaware.

Want to learn more about the latest in communications and technology? Then be sure to attend ITEXPO Miami 2013, Jan 29- Feb. 1 in Miami, Florida.  Stay in touch with everything happening at ITEXPO (News - Alert). Follow us on Twitter.