Cequel Communications Holdings, LLC, which does business as Suddenlink, reported that BC Partners and CPP Investment Board, in partnership with Suddenlink’s management team led by Chairman and Chief Executive Officer Jerry Kent, have completed the purchase of the company.
When the sale was initially reported in August, representatives said the buyout will not affect jobs, customers, services or operations of the cable provider. The transactions were subject to customary closing conditions, including receipt of required regulatory approvals.
Suddenlink’s enterprise value of $6.6 billion includes $1.985 billion of total equity invested by BC Partners, CPP Investment Board, and certain members of Suddenlink management, plus incremental debt of $500 million and assumption of existing net liabilities, according to a prepared statement.
Proceeds were used to acquire the ownership stake of all holders of Suddenlink’s preferred and common equity, led by Goldman Sachs Capital Partners and including Quadrangle, Oaktree Capital Management, and The Jordan Company.
Kent will continue to lead the company.
“This agreement will allow us to continue to invest in our infrastructure, new technology and most importantly, our people,” Kent said in August. “We have 6,000 employees who are dedicated to providing a superior level of customer care, and who generate consistent, industry-leading operating results.”
Pete Abel, senior vice president, corporate communications, said earlier that it is a management-led buyout, which means the current management team will continue to operate the company. He said the sale will have no effect on jobs, customers, services or operations.
Abel said there are more than 1,000 Suddenlink employees in Tyler. Suddenlink, which has corporate headquarters in St. Louis, has two call center facilities in Tyler.
BC Partners is a leading private equity firm with advised funds of $16.4 billion. Established in 1986, BC Partners has played an active role in developing the European buy-out market for 25 years. BC Partners executives operate as an integrated team through its offices in Europe and North America, acquiring and developing businesses to create value in partnership with management, according to a prepared statement.
In connection with the acquisition, a newly formed subsidiary of Suddenlink has entered into a commitment letter with Credit Suisse for $500 million of senior unsecured bridge loans, which will be used to fund a portion of the purchase price, the company reported earlier. Suddenlink will continue to be managed by Cequel.