Orange County System Included in Big Cable Deal
Rogers Communications Inc. said Tuesday that it has agreed to sell its U.S. cable television interests to KBL Cable Inc., a unit of Texas-based Houston Industries Inc., for $1.27 billion.
The company operates cable systems in San Antonio and Laredo, Tex., Orange County, Portland, Ore., and Minneapolis, with 525,000 subscribers.
Houston Industries, a Texas power company, is involved in cable television through its 50% interest in Paragon Communications, which operates cable systems that serve more than 670,000 subscribers in several states including California and Texas.
Rogers has said it wanted to sell the U.S. systems partly to pay down debt and to finance acquisitions in Canada. Last June, it pared the original 10 bids down to seven, all from U.S.-based concerns.
In the past 18 months, Rogers has added about $289.3 million, primarily in short-term bridge loans, to its debt to finance the buyback of about 14 million Class B shares.
The transaction is subject to approval by the directors of Houston Industries and the receipt of regulatory transfer approvals.
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