Cablevision Systems plans about $1 billion in bank and bond debt for Bresnan purchase

By Sara Rosenberg

New York, June 14 - Cablevision Systems Corp. has received commitments for roughly $1 billion in debt financing, which will include a new credit facility and high-yield bonds, for its acquisition of Bresnan Communications, according to a market source.

Bank of America and Citigroup are the lead banks on the debt.

The financing will be obtained by a newly formed, unrestricted subsidiary of the company so that it is non-recourse to Cablevision or its CSC subsidiary, company officials said in a conference call on Monday.

Total leverage at the new subsidiary will be around 6.0 times.

Under the agreement, the new Cablevision subsidiary is buying Bresnan in a transaction valued at $1.365 billion.

Other funding for the transaction will come from an equity investment by Cablevision of less than $400 million.

Closing on the acquisition is expected to occur late this year or early next year, subject to customary conditions, including regulatory approval.

Cablevision is a Bethpage, N.Y.-based telecommunications, media and entertainment company. Bresnan is a Purchase, N.Y.-based broadband telecommunications company.

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