Investor Presentaiton
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Transaction overview
ACQUISITION BY ATLANTIC BROADBAND ("ABB") OF THE OHIO CLUSTER OF ASSETS
OF WIDEOPENWEST ("WOW!"):
• Wide OpenWest is a publicly traded cable communications provider (NYSE: WOW)
• WOW!'s Ohio Cluster includes 688,000 homes passed, serving 198,000 customers in the Cleveland, OH and
Columbus, OH regions
• Provider of Internet, video and telephony services to residential and business customers in Ohio
US$1.125 BILLION PURCHASE PRICE (US$985 MILLION NET OF TAX BENEFITS)
• Cash-free, debt-free basis
• Purchase of assets, creating tax benefits with a present value of US$140 million (1)
• 9.6x LTM 3/31/21 Adjusted EBITDA purchase price multiple on a tax-adjusted basis (2)(3)
FULLY COMMITTED FINANCING MAINTAINS COGECO COMMUNICATIONS' ("COGECO")
STRONG POSITION
• US$900 million Term Loan B at ABB bringing pro forma leverage at ABB to 5.0x (at close)
Cogeco's consolidated pro forma net leverage at close is estimated at 3.1x which is intended to preserve its secured
debt investment grade rating
(1) Assumes present value of tax assets due to step-up.
(2) LTM 3/31/21 Adjusted EBITDA of US$103 million, including adjustments to reflect the expected cost structure of Atlantic Broadband and run-rate synergies.
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(3) Multiple based on Transaction value using a tax-adjusted purchase price, which is net of the US$140 million tax benefits related to the step-up of intangibles in an asset purchase.
Refer to page 21 for a detailed explanation on the tax benefits.
(C) COGECO
ATLANTIC
broadband
COMMUNICATIONS
a Cogeco companyView entire presentation