Cable ONE Announces Launch of Syndication of New Credit Facilities

Cable One, Inc. (NYSE: CABO) (the “Company” or “Cable ONE”) today announced that it has launched the syndication of a new $350 million senior secured revolving credit facility (the “Revolving Credit Facility”), a new $250 million senior secured term loan A facility (the “Term Loan A”) and a new $450 million senior secured delayed draw term loan A facility (the “Delayed Draw Term Loan A” and, together with the Revolving Credit Facility and the Term Loan A, the “New Credit Facilities”). The New Credit Facilities are expected to mature five years after the closing date of the financing, and the Delayed Draw Term Loan A is expected to be available to be drawn at any time during the first nine months following the closing date of the financing.

The Company intends to apply the proceeds of the New Credit Facilities, together with cash on hand and borrowings under its previously established $325 million senior secured delayed draw term loan “B-3” facility, to refinance its existing senior secured revolving credit facility and senior secured term loan A facility, redeem its outstanding 5.75% senior unsecured notes due 2022 (the “Notes”) on or after June 15, 2019 when the call premium steps down, finance the Company’s pending acquisition of Fidelity Communications Co.’s data, video and voice business and certain related assets (collectively, “Fidelity”) and for other general corporate purposes. This press release is not, and shall not be deemed to be, a notice of optional redemption of the Notes.

The effectiveness of the New Credit Facilities and the terms thereof, including principal amounts and interest rates, are subject to market conditions and other factors outside of the Company’s control.

J.P. Morgan is acting as lead arranger on the transaction.

About Cable ONE

Cable One, Inc. (NYSE: CABO) is a leading broadband communications provider serving more than 800,000 residential and business customers in 21 states. Cable ONE provides consumers with a wide array of connectivity and entertainment services, including high-speed internet and advanced Wi-Fi solutions, cable television and phone service. Cable ONE Business provides scalable and cost-effective products for businesses ranging in size from small to mid-market, in addition to enterprise, wholesale and carrier customers.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

This communication may contain “forward-looking statements” that involve risks and uncertainties. These statements can be identified by the fact that they do not relate strictly to historical or current facts, but rather are based on current expectations, estimates, assumptions and projections about the Company’s industry, business, financial results and financial condition. Forward-looking statements often include words such as “will,” “should,” “anticipates,” “estimates,” “expects,” “projects,” “intends,” “plans,” “believes” and words and terms of similar substance in connection with discussions of future operating or financial performance. As with any projection or forecast, forward-looking statements are inherently susceptible to uncertainty and changes in circumstances. The Company’s actual results may vary materially from those expressed or implied in its forward-looking statements. Accordingly, undue reliance should not be placed on any forward-looking statement made by the Company or on its behalf. Important factors that could cause the Company’s actual results to differ materially from those in its forward-looking statements include government regulation, economic, strategic, political and social conditions and the following factors:

• risks regarding the failure to obtain the New Credit Facilities;
• uncertainties as to the timing of the acquisition of Fidelity and the risk that the transaction may not be completed in a timely manner or at all;
• the possibility that any or all of the various conditions to the consummation of the acquisition of Fidelity may not be satisfied or waived, including failure to receive any required regulatory approvals (or any conditions, limitations or restrictions placed in connection with such approvals);
• the effect of the announcement or pendency of the Fidelity transaction on the Company’s and Fidelity’s ability to retain and hire key personnel and to maintain relationships with customers, suppliers and other business partners;
• risks related to diverting management’s attention from the Company’s ongoing business operations;
• uncertainties as to the Company’s ability and the amount of time necessary to realize the expected synergies and other benefits of the Fidelity transaction;
• the Company’s ability to integrate Fidelity’s operations into its own;
• rising levels of competition from historical and new entrants in the Company’s markets;
• recent and future changes in technology;
• the Company’s ability to continue to grow its business services products;
• increases in programming costs and retransmission fees;
• the Company’s ability to obtain hardware, software and operational support from vendors;
• the effects of any new significant acquisitions by the Company;
• risks that the Company’s rebranding may not produce the benefits expected;
• adverse economic conditions;
• the integrity and security of the Company’s network and information systems;
• the impact of possible security breaches and other disruptions, including cyber-attacks;
• the Company’s failure to obtain necessary intellectual and proprietary rights to operate its business and the risk of intellectual property claims and litigation against the Company;
• the Company’s ability to retain key employees;
• legislative or regulatory efforts to impose network neutrality and other new requirements on the Company’s data services;
• additional regulation of the Company’s video and voice services;
• the Company’s ability to renew cable system franchises;
• increases in pole attachment costs;
• changes in local governmental franchising authority and broadcast carriage regulations;
• the potential adverse effect of the Company’s level of indebtedness on its business, financial condition or results of operations and cash flows;
• the possibility that interest rates will rise, causing the Company’s obligations to service its variable rate indebtedness to increase significantly;
• the Company’s ability to incur future indebtedness;
• fluctuations in the Company’s stock price;
• the Company’s ability to continue to pay dividends;
• dilution from equity awards and potential stock issuances in connection with acquisitions;
• provisions in the Company’s charter, by-laws and Delaware law that could discourage takeovers; and
• the other risks and uncertainties detailed from time to time in the Company’s filings with the SEC, including but not limited to its latest Annual Report on Form 10-K as filed with the SEC.

Any forward-looking statements made by the Company in this communication speak only as of the date on which they are made. The Company is under no obligation, and expressly disclaims any obligation, except as required by law, to update or alter its forward-looking statements, whether as a result of new information, subsequent events or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20190418005712/en/