ATLANTA AND ST. LOUIS - Cox Communications, Inc. and Cebridge Connections today announced the closure of a transaction for the sale of certain Cox Communications cable television system operations to Cebridge. Cox selected Cebridge for the opportunity to purchase the cable systems after a bidding process, and the two companies announced their definitive agreement for the purchase in November 2005.
Included in the transaction are Cox's systems in West Texas, serving Lubbock, Midland, Amarillo, San Angelo and Abilene areas; North Carolina, serving Greenville, Rocky Mount, New Bern and Kinston areas; Humboldt County and Bakersfield, California; and much of Middle America Cox (MAC), primarily comprised of operations in Texas, Louisiana and Arkansas. MAC also includes certain systems in Oklahoma, Mississippi and Missouri. Excluded from the sale are some MAC operations serving Northwest Arkansas and Lafayette, Louisiana areas.
"Our management team has a long history of building successful companies in suburban and second-tier markets, and we are especially excited about the potential in these properties we have acquired from Cox," said Jerry Kent, Cebridge's chief executive officer. "We're also excited about the terrific group of employees joining us and we look forward to working with them on expanding the array of services we offer and on combining our resources to ensure world-class care for our customers."
"We thank our longtime Cox employees for their exemplary service to the company and wish them well in their new careers with Cebridge. The divestiture of these properties allows Cox to increase the focus of resources on our proven bundling strategy within the markets that remain with Cox Communications," said Pat Esser, president. "New bundle elements and enhancements are in development and soon to be introduced. With less debt, we'll be able to roll these out more quickly and continue to serve as the top provider in each of our markets."
Citigroup Global Markets, Lehman Brothers, Inc., Daniels & Associates and JP Morgan Securities served as advisors to Cox, and Goldman Sachs acted as sole financial advisor to Cebridge in connection with this exchange. With this transaction, Cebridge joins the ranks of the ten largest U.S. cable operators, and will serve approximately 1.2 million customers in a tight geographical footprint, concentrated in the central and southern United States.
Acerca de Cox Communications
Cox Communications, a Fortune 500 company, is a multi-service broadband communications and entertainment company with more than 5.9 million total residential and commercial customers. Cox offers an array of advanced digital video, high-speed Internet and telephony services over its own nationwide IP network. Cox Business Services is a full-service, facilities-based provider of communications solutions for commercial customers, providing high-speed Internet, voice and long-distance services, as well as data and video transport services for small to large-sized businesses. Cox Media offers national and local cable advertising in traditional spot and new media formats, along with promotional opportunities and production services. More information about the services of Cox Communications, a wholly owned subsidiary of Cox Enterprises, is available at www.cox.com/espanol, www.coxbusiness.com y www.coxmedia.com
About Cebridge Connections
Cebridge Connections is a major operator of cable TV systems, providing cable television, high-speed Internet, and other advanced services. Upon closing its announced acquisition of cable systems from Charter Communications later this year, the combined company will serve approximately 1.4 million customers. Cebridge is also in the process of a name change. The holding company will be known as Cequel Communications, while the operating companies will do business as Suddenlink Communications. The company's primary investors include GS Capital Partners (a private equity fund of The Goldman Sachs Group, Inc.), certain funds managed by Oaktree Capital Management, Quadrangle Capital Partners II LP, and The Jordan Company LP. Other significant investors include Lehman Brothers Co-Investment Partners LP, The Oklahoma Publishing Company and subsidiaries, Charterhouse Group, Inc., certain funds managed by Merrill Lynch Investment Managers Private Equity Partners, and certain funds managed by Siguler Guff & Company.
Contact:
Cox Communications:
Stephanie Davis
404.843.7872
Stephanie.Davis2@cox.com
Cebridge Connections:
Pete Abel
314.315.9346
pete.abel@suddenlink.com
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