Cable One’s $574.1 Million Investment in MBI

Kirkland & Ellis LLP acted as legal advisor to GTCR, a leading private equity firm, and its portfolio company MBI, while Locke Lord LLP acted as legal advisor to Cable One on the transaction.

Mega Broadband Investments Holdings LLC (MBI) and Cable One, Inc. (NYSE: CABO) have entered into a definitive agreement providing for a strategic investment by Cable One in MBI.

Cable One will purchase a 45% minority stake in MBI from affiliates of GTCR LLC (“GTCR”), a leading private equity firm, for approximately $574.1 million in cash, subject to adjustment for certain new debt incurrences and transaction expenses. In addition to the minority stake it will acquire, Cable One will have the right to purchase the remaining interests in MBI at a predetermined multiple of earnings beginning in 2023.

The transaction is expected to be completed during the fourth quarter of 2020. Cable One expects to fund the transaction through cash on hand.

Credit Suisse acted as financial advisor to MBI, and Truist Securities, Inc. acted as financial advisor to Cable One on this transaction.

Cable One, Inc. (NYSE: CABO) is a leading broadband communications provider serving more than 900,000 residential and business customers in 21 states through its Sparklight® and Clearwave™ brands.

Mega Broadband Investments LLC, operating as Vyve Broadband, largely serves rural communities in sixteen states, across the Southeast, Northwest, and Mid-South United States. Vyve Broadband offers an extensive range of broadband, fiber connectivity, cable television and voice services for commercial and residential customers.

The Kirkland team advising GTCR and MBI was led by transactional partners Mark Fennell (Picture) and Christopher Thomas and associates Sam Stucker and Tracy Reyes; and tax partners Greg Gallagher and Polina Liberman.

Involved fees earner: Mark Fennell – Kirkland & Ellis; Gregory Gallagher – Kirkland & Ellis; Polina Liberman – Kirkland & Ellis; Tracy Reyes – Kirkland & Ellis; Sam Stucker – Kirkland & Ellis; Christopher Thomas – Kirkland & Ellis;

Law Firms: Kirkland & Ellis;

Clients: GTCR; Mega Broadband Investments;

Author: Ambrogio Visconti