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Cablevision Buys Bresnan for $1.4 Billion

Cablevision Systems said it will acquire medium-sized cable company Bresnan Communications for $1.365 billion.
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NEW YORK (TheStreet) -- Cablevision Systems (CVC) said Monday it will acquire medium-sized cable company Bresnan Communications for $1.365 billion.

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

and

Citi

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.

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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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