Cable One set to raise $550M in debt as it spins off from Graham Holdings

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. 

For more:
- read this Graham Holdings release

Related links:
Cable One readies for spin-off, taps Kevin Coyle as CFO
Graham Holdings to spin off Cable One
Cable One promotes Laulis to president and COO

Suggested Articles

It’s been almost a year since we last broke down the timeline for price increases at YouTube TV, AT&T TV Now and other virtual MVPDs.

Virtual MVPD FuboTV has joined YouTube TV, AT&T TV and others this week in raising its monthly rates, despite losing TBS, TNT and other channels.

Charter Communications said it will add five “Latino targeted TV networks” to its Spectrum TV lineup.