Cable One will offer $450 million of senior unsecured notes and raise a total of $550 million of debt as it prepares to spin off from its parent company, Graham Holdings.
Phoenix, Ariz.-based Cable One will use the proceeds to pay a one-time cash dividend to Graham Holdings, the parent company said Tuesday.
Cable One is the 10th largest U.S. cable operator, reporting $815 million in revenue in 2014. The operator touts 420,000 video subscribers across the Midwest, South and Western U.S.--that number is down significantly, from the 524,000 customers it reported just a year ago.
Further, Cable One has notably eschewed a major programming renewal deal with Viacom, as well as other business investments. The MSO reported a 3 percent drop in first-quarter revenue to $198.7 million.
Amid the consolidating pay-TV landscape, Cable One has been mentioned as a possible acquisition target for magnates like Patrick Drahi's Altice SA.
Graham Holdings announced spin-off plans for Cable One back in November. In March, the MSO appointed veteran telecommunications industry financial executive Kevin Coyle as CFO.
Graham Holdings (formerly Post-Newsweek Stations) is the former owner of the Washington Post. It now owns five large-market TV stations, as well as higher-education materials publisher Kaplan.
- read this Graham Holdings release
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