Cablevision expects Bresnan to be acquired by a newly-formed subsidiary with standalone financing. The subsidiary is expected to be financed using debt of about $1 billion and an equity investment by Cablevision of less than $400 million.
Bank of America Merrill Lynch
have provided commitments for the debt financing.
The transaction should be completed in late 2010 or early 2011, Cablevision said in a press release. After the transaction is completed, Cablevision will gain advanced cable systems serving more than 300,000 basic subscribers, the company said.
Cablevision also said Monday it is repurchasing up to $500 million of its class A common stock.
Shares of Cablevision were 0.4% higher to $23.50 in premarket trading Monday.
-- Reported by Andrea Tse in New York
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