ABB's Growth Strategy for MetroCast
HISTORY OF DELEVERAGING FOLLOWING ACQUISITIONS
•
Expected consolidated net debt / Adjusted EBITDA of 3.6x at closing with a plan to reduce net leverage
to the low 3x within 18 months
Cogeco is naturally hedged from a free cash flow perspective as US$ EBITDA exposure is mostly offset
by interest expense on U.S. denominated debt and capex
CONSOLIDATED NET DEBT (1) / ADJUSTED EBITDA
Acquisition of three companies
operating in the business
market in Ontario (2)
Acquisition of
Quiettouch & MTO
Acquisition of ABB & Peer 1
Hosting
Acquisition of MetroCast
Connecticut
2.5
1.9
1.8
1.7(3)
1.4 (3)
(4)
3.5
3.3(5)
3.0
2.9
2.8
FY2008
BBB-
FY2009
FY2010
BBB-
BBB-
FY2011
BBB
FY2012
BBB
FY2013
BBB
FY2014
FY2015
BBB
BBB
FY2016
BBB
Q2-FY2017
BBB-(6)
S&P Senior Secured Rating
Represents the addition of bank indebtedness, balance due on business combination, intercompany note payable, principal on long-
term debt and obligations under derivative financial instruments net of cash and equivalents.
Includes Toronto Hydro Telecom Inc., which now operates under the name of Cogeco Peer 1, the assets of MaXess network and
FibreWired Burlington Hydro Communications.
(1)
(2)
(3)
(4)
(5)
Includes the acquisition of MetroCast Connecticut.
(6)
Restated for IFRS purposes.
Includes twelve months EBITDA of ABB and Cogeco Peer 1.
Following a change in notching methodology for BB+ corporate issuers in December 2016, S&P reduced the secured rating to BBB-.
S&P's secured rating is now aligned with DBRS and Fitch's ratings.
ATLANTIC (C>>> COGECO
18
COMMUNICATIONS
broadband
a Cogeco companyView entire presentation