Cogeco Communications

Press release details


For immediate release
Cogeco Cable completes acquisition of
Cabovisão – Televisão por Cabo, S.A.
Montréal, Canada. — August 3, 2006 — Cogeco Cable Inc. (TSX: CCA), the second largest
cable operator in both Ontario and Québec based on the number of basic cable service
customers served, announced today that it has completed its previously announced acquisition
of Cabovisão – Televisão por Cabo, S.A (Cabovisão), the second largest cable operator in
"The completion of this acquisition represents a significant step for Cogeco Cable in our strategy
to secure growth opportunities for our shareholders, " said Louis Audet, president and chief
executive officer of Cogeco Cable. "Today, we significantly increase our knowledge by
welcoming more than 500 experienced employees from Cabovisão - individuals who know the
Portuguese marketplace and Cabovisão products. As a result of the acquisition, we also now
have a top of the class two-way network serving our Portuguese clients on which we can layer
new services to fulfil their current and future telecommunications needs. "
Mr. Audet continued: "This acquisition is in accordance with the external growth strategy
announced by Cogeco Cable last October. We are now squarely focused on quickly seizing the
attractive opportunities this transaction has created for us to increase top-line growth, to
increase customer satisfaction and to solidify our competitive position while soundly controlling
cost. With the Cabovisão acquisition now complete, Cogeco Cable is a stronger, more broadly
based company than ever before. We are looking forward to delivering on the promise of this
acquisition and to building value for our shareholders."
Through acquisition subsidiaries, Cogeco Cable had purchased on an agreed enterprise value
of approximately €465 million, all the shares and all senior secured debt of Cabovisão, and
provided for the reimbursement of certain other specified liabilities of Cabovisão. The final
purchase price will be determined following completion of a post-closing working capital
As anticipated, Cogeco Cable Inc. concluded as of July 28, 2006 an amended and restated
credit agreement providing for a CDN $900 million 5-year bank credit facility with a group of
financial institutions. This facility is composed of three tranches: a revolving tranche of
CDN $ 725 million maturing on July 28, 2011; a non-revolving tranche of CDN $ 25 million
equivalent in euros maturing on July 28, 2011; and a non-revolving tranche of CDN $150 million
maturing on July 28, 2011 and principal reductions required are: CDN $15 million on July 28,
2008, CDN $22.5 million on July 28, 2009, CDN $37.5 million on July 28, 2010 and CDN $75
million on July 28, 2011. This facility is secured pursuant to a bond trust deed between the
corporation and Computershare Trust Company of Canada, as bond trustee, and various other
security documentation in favour of the bond trustee, including a pledge of the shares of
Cabovisão – Televisão por Cabo and of other subsidiaries of the corporation.
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Cogeco Cable (, a telecommunications company offering a diverse range of
services to its customers in Canada and in Portugal, is the second largest cable operator in
Ontario, Québec and Portugal in terms of the number of basic service customers served. The
Corporation invests in state-of-the-art broadband network facilities, delivers a wide range of
services over these facilities with great speed and reliability at attractive prices, and strives to
provide both superior customer care and growing profitability to satisfy its customers’ varied
electronic communication needs. Through its two-way broadband cable infrastructures, Cogeco
Cable provides its residential and commercial customers with analog and digital video and audio
services, high-speed Internet access as well as telephony services. The Corporation provides
about 1,511,693 revenue-generating units (RGU)
to approximately 1,469,009 homes passed
in its Canadian service territory and 611,204 RGUs
to approximately 820,309 homes passed
in its Portuguese service territory. Cogeco Cable’s subordinate voting shares are listed on the
Toronto Stock Exchange (CCA).
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Information: Pierre Gagné
Vice President, Finance and Chief Financial Officer
Tel. : +1 514 874-2600
Marie Carrier
Director, Corporate Communications
Tel.: +1 514 874-2600
As at May 31, 2006
As at March 31, 2006