ABB's Growth Strategy for MetroCast
TRANSACTION DETAILS
Price and
consideration
• US$1.4 billion purchase price, including US$310 million (1) of tax value
• All cash consideration
• 9.0x CY2017E Adjusted EBITDA(2)
Committed
financing
US$1.7 billion Senior Secured Term Loan B, of which approximately US$585 million is expected to
be used to refinance existing debt
US$150 million Senior Secured Revolving Credit Facility at ABB
• US$315 million equity investment from CDPQ for 21% minority interest in ABB's holding company
Transaction
structure
Purchase of assets, creating a tax step-up by which intangible assets can be amortized for tax
purposes
• Cash-free, debt-free basis
Anticipated
closing
(1)
(2)
อล
January 2018 expected closing
• Regulatory approval process for franchise agreements
• Hart-Scott-Rodino and CFIUS approvals and customary closing conditions
Assumes present value of tax assets due to step-up, based on illustrative discount rate of 8.0%.
Based on tax-adjusted purchase price which is net of the US$310 million tax benefits related to the step-up of intangibles in an asset
purchase. Refer to page 23 for a detailed explanation on the tax benefits.
ATLANTIC (C>>> COGECO
broadband
a Cogeco company
19
COMMUNICATIONSView entire presentation