BCI buys Mississippi cable provider

System is second major acquisition in month for Toledo-based company

Block Communications Inc. announced on Monday that it has signed an agreement to acquire MetroCast Mississippi, a cable system that provides cable television, telephone, and Internet services to more than 45,000 residential and business customers in 71 communities in 16 counties of Mississippi.

The deal, which is expected to close in the fourth quarter of this year, is subject to franchise transfer approval. Terms of the deal were not disclosed.

It marks the second major acquisition this month by Block Communications, which has headquarters in Toledo. Last week, the diversified media holding company acquired Line Systems Inc., a suburban Philadelphia business communications provider.

MetroCast Mississippi is a subsidiary of Harron Communications LP of Frazer, Pa., a cable television operator that operates systems in nine states. MetroCast Mississippi will become a subsidiary of Block Communications, which also owns The Blade and Buckeye CableSystem, which provides services in northwest Ohio and southeast Michigan.

Allan Block, chairman of Block Communications, said the Mississippi cable franchise is a modern cable system that is interconnected, will be entirely digital by year’s end, and provides the three modern cable-based services demanded by consumers — cable, phone, and Internet. MetroCast also has an excellent reputation among its customers, he added.

The purchase represents a “geographic diversification and a rural diversification” for Block Communications. “There is multiple growth potential. I am optimistic this will be a good opportunity for the company for the future,” Mr. Block said.

“We couldn’t be more pleased to have another family-owned, customer-oriented company who has enjoyed a long history in the communications industry like Block Communications acquire our Mississippi systems,” said James J. Bruder, Jr., chairman and CEO of Harron Communications.

MetroCast Mississippi serves customers over a 200-mile territory, including the university cities of Oxford, home to the University of Mississippi, and Starkville, home to Mississippi State University. It also serves the hometown of Oprah Winfrey, who is from Kosciusko, Miss. The service area also includes the county seats of Carthage, Holly Springs, Kosciusko, Philadelphia, Booneville, Raleigh, Iuka, Louisville, Houston, Decatur, Pontotoc, Forest, and New Albany. Its reach even extends over the state line to small towns such as Red Bay, Ala.

As of March 31, 2014, MetroCast’s area encompasses more than 100,000 residences and has 61,000 primary service units. Primary service units include video, high-speed data, and residential telephone customers. Some customers receive all three services.

The acquisition is not the first business investment in the South for the Block family, owners of Block Communications.

In 1921, Mr. Block’s grandfather, Paul Block, purchased the Memphis News-Scimitar newspaper. The Tennessee newspaper’s coverage area extended into Mississippi.

In May, 1925, the News-Scimitar covered the exploits of Tom Lee, a 39-year-old black man who used his small wooden skiff to save 32 passengers from a capsized riverboat on the Mississippi River. Paul Block led a successful effort to have Mr. Lee invited to the White House to receive an award from President Calvin Coolidge.

Mr. Block sold the newspaper in 1926.

Contact Jon Chavez at: jchavez@theblade.com or 419-724-6128.

WALLER CAPITAL ADVISES M/C PARTNERS & COLUMBIA CAPITAL ON THE SALE OF BAJA BROADBAND TO TDS TELECOM

M/C Partners and Columbia Capital to Sell Baja Broadband to TDS Telecom

 BOSTON, MA & ALEXANDRIA, VA – Feb. 26, 2013 – M/C Partners and Columbia Capital announced today that they have agreed to sell the assets of Baja Broadband, LLC (“Baja”) to Telephone and Data Systems, Inc. [NYSE: TDS], parent company to TDS Telecommunications Corp. (“TDS Telecom”) for a purchase price of $267.5 million, subject to working capital and other adjustments.

Baja Broadband, which is owned and controlled by M/C Partners and Columbia, is a full-service communications company providing video, high-speed broadband and voice services to residential and commercial customers in Colorado, New Mexico, Texas and Utah.

“Baja has been a successful investment for us, and we have enjoyed a terrific working relationship with the management team,” said Gillis Cashman of M/C Partners.  “We are pleased with this transaction and believe that TDS Telecom is the ideal owner of Baja going forward.”

“M/C Partners and Columbia Capital have both contributed enormously to developing Baja Broadband into a leading communications operator, and we thank them for their support,” said Peter Kahelin, CEO, Baja Broadband.  “I am confident that TDS Telecom’s focus on quality, integrity and outstanding service will enhance our already strong relationships with our customers, our employees and our communities.”

Waller Capital Partners served as an advisor to M/C Partners and Columbia Capital on the transaction.  Edwards Wildman Palmer LLP served as legal counsel to M/C Partners and Columbia Capital.

About M/C Partners

M/C Partners is a private equity firm focused exclusively on the communications, media, and information technology sectors. The firm has invested over $1.5 billion into over 100 companies in those sectors.  Companies M/C has backed include Brooks Fiber Properties, Cavalier Telephone, Corelink, Fusepoint, Attenda, ICG Communications, Legendary Pictures, PlumChoice, Lightower, MetroPCS, NuVox, AccentHealth and Zayo Group. The firm has strong institutional backing from the nation’s leading pension funds and endowments as well as a long track record of success. M/C Partners has offices in Boston, San Francisco and London. For more information, visit www.mcpartners.com.

About Columbia Capital

Columbia Capital is a premier investment firm in wireless, broadband, media, and enterprise information technology companies.  Since its formation in 1989, the firm has invested in over 130 global companies through five investment funds with aggregate capital commitments of $2.5 billion.  Columbia has a strong history of forming close partnerships with its entrepreneurs and a reputation for a disciplined and patient approach to building great companies and achieving superior investment returns. The firm’s sector focus allows it to consistently identify disruptive emerging companies and to recognize and build value throughout a company’s lifecycle – from seed stakes of $1 million to late stage capital infusions of $50 million or more.  For more information, visit www.colcap.com.

About Baja Broadband

Baja Broadband is a full-service communications company offering best-in-class residential and commercial video, high-speed internet, and voice services. Baja is committed to being the leading provider of entertainment, information, and communication services in the communities it serves. Baja owns and operates broadband networks in communities within Colorado, New Mexico, Texas and Utah. Visit bajabroadband.com for more information.  Baja is currently managed by Last Mile Communications, an international management partnering and telecommunications consulting firm. Visit lastmile.net for more information.

About Telephone and Data Systems

Telephone and Data Systems, Inc. (TDS), a Fortune 500® company, provides wireless; broadband, TV and voice; and hosted and managed services to approximately 7 million customers in 36 states through its business units, U.S. Cellular, TDS Telecom and TDS Hosted & Managed Services. Founded in 1969 and headquartered in Chicago, TDS employed 12,300 people as of Dec. 31, 2012. Visit teldta.com  for comprehensive financial information, including earnings releases, quarterly and annual filings, shareholder information and more.

About TDS Telecommunications Corp.

TDS Telecommunications Corp. is the seventh largest local exchange telephone company in the U.S. Headquartered in Madison, Wis., it is a wholly owned subsidiary of Telephone and Data Systems, Inc. For 44 years, the company has been connecting people with high-speed Internet, phone, and TV entertainment services in over a hundred rural, suburban, and metropolitan communities across 32 states. Today, TDS has nearly 1 million customer connections in service and 2,900 employees. Business customers select from the latest technologies, including: VoIP (managed IP Hosted) phone service, dedicated high-speed Internet and hosted-managed services. Visit tdstelecom.com  or tdsbusiness.com for more information.

About Waller Capital

Founded in 1982, Waller Capital Partners is a leading boutique investment bank and advisory Firm focused on the media, communications and information sectors.  Waller Capital provides its clients with wide-ranging industry expertise in connection with mergers and acquisitions, private placements, asset swaps, restructurings and valuation services.  Waller Capital’s experienced professionals maintain deep relationships at every level of its core industries and provide the Firm’s clients with independent, unbiased advice.

US Cable to Sell Cable Systems to Baja Broadband

Third Deal for US Cable Since June

In June, US Cable sold its cable systems in Minnesota and Wisconsin to Midcontinent Cable and shortly after sold its cable operations in Missouri to Charter Communications (Nasdaq:CHTR). After Tuesday, you can add Texas, Colorado and New Mexico to the list of states in which the MSO will no longer operate. US Cable announced its third deal in under three months—an agreement to sell cable systems serving 60k revenue generating units to South Carolina-based Baja Broadband.

Similar to the Charter and Midcontinent deals, financials on the Baja purchase were not disclosed, nor was there detail on the number of customers served by the systems that were sold. We can estimate from the RGU totals however around 30k customers. After accounting for the 50k customers acquired by Midcontinent and Charter, US Cable has sold territories serving around 80k of its subscribers since June. 

Prior to June, US Cable had reported in a press release that it served only around 90k customers, suggesting that after its recent sales, its time in the cable business is coming to a close. US Cable is a partnership between Comcast and private investors led by Steven Myers. While Comcast is not getting out of the cable business any time soon, Steven Myers and company have decided the time to exit is now.

Taking the opposite view point, the owners of Baja Broadband—private equity firm, MC Ventures—feel that cable operations remains a strong investment. Gilles Cashman, a chairman at Baja and general partner at MC Ventures commented on M&A in cable earlier this year.

“In the fiber sector, it’s compelling to do acquisitions because there are such economies of scale. The more properties you acquire, the more you can leverage those relationships to sell the same customer over a broader geography.  Your sales momentum increases when you’ve got more footprint to sell.”

Baja currently serves 60k customers across New Mexico, Colorado, Utah and Nevada. The US Cable purchase will expand its footprint in New Mexico and Colorado, helping to provide the economies of scale that Cashman references. He also provided some insight into the type of cable companies MC Ventures would look to invest in during 2011. The firm targets cablecos that have not yet achieved strong penetration with digital video and broadband internet products, leaving room for ARPU growth.

“Where we are focused with respect to cable is guys that don’t have huge penetrations in video and have not been able to penetrate the digital product as much as others. They’re going to be better positioned to make the transition to more of a broadband provider than those who have $120 video ARPU’s,” commented Cashman.

An interesting aspect to this deal is that MC Ventures—a communications focused firm—is betting on cable while many private investors are getting out of their cable investments.  In the past year, Virginia-based MCG Capital sold its stakes in Avenue Broadband and JetBroadband, while Carlyle recently agreed to sell its ownership in Insight Communications. In cable M&A of late, the story has been the big get bigger—recent buyers have been the large cablecos such as Time Warner and Charter. Baja Broadband is one smaller provider bucking that trend.

Satview Broadband Ltd. to Purchase System From Baja Broadband LLC

WENR Corporation (PINKSHEETS: WNRC) announced today Satview Broadband Ltd., a wholly owned subsidiary of WENR Corp., has signed an agreement to purchase a non-core cable system from Baja Broadband LLC, a portfolio company of M/C Venture Partners and Columbia Capital, in Nevada. Financial terms of the transaction have not been disclosed. Closing will occur in Q4 2010 upon receipt of regulatory and other approvals.

Baja Broadband provides triple-play broadband services including cable television, high-speed Internet and digital voice to approx 70,000 residential and commercial customers in Utah, New Mexico and Colorado. Peter Kahelin, CEO of Baja, said, "We are pleased to have concluded this process with a successful outcome. This strategic transaction will allow us to focus our attention and growth capital on our core systems, and continue to provide our subscribers with superior customer service and the most advanced products available."

Waller Capital Partners, LLC, a New York City based investment bank, served as Baja Broadband's exclusive financial advisor in the transaction.

About Satview Broadband Ltd.

Satview is a wholly owned subsidiary of WENR Corporation (PINKSHEETS: WNRC). Satview is a Reno-based television-programming provider operating in Elko County and Douglas County, Nevada. Satview designs, builds and operates broadband systems in the communities it serves.

About WENR

WENR Corporation is a media holding company, which has two wholly owned subsidiaries, Satview Broadband Ltd. and Ngensolutions LLC.

The foregoing contains forward-looking information within the meaning of The Private Securities Litigation Act of 1995. Such forward-looking statements involve certain risks and uncertainties. The actual results may differ materially from such forward-looking statements. The company does not undertake to publicly update or revise its forward-looking statements even if experience or future changes make it clear any projected results (expressed or implied) will not be realized.

Contact: WENR Corporation Dan Green 435-709-8350 www.wenr.net

Hicks, Muse, Tate & Furst to Acquire Centennial Cable TV of Puerto Rico in $155 Million Transaction

DALLAS--(BUSINESS WIRE)--Sept. 7, 2004--Hicks, Muse, Tate & Furst Incorporated ("HMTF") today announced the signing of a definitive agreement under which it will acquire Centennial Puerto Rico Cable TV Corp. ("CCTV"), a wholly owned subsidiary of Centennial Communications Corp. (Nasdaq: CYCL), of Wall, N.J., in an all-cash transaction valued at approximately $155 million. CCTV is HMTF's eleventh cable platform acquisition since its first such transaction, Marcus Cable, in 1995.

CCTV offers cable television and high-speed cable modem service to a service area comprising approximately 305,000 contiguous homes throughout southern and western Puerto Rico, an area that includes the island's second- and third-largest cities, Ponce and Mayaguez. CCTV currently serves more than 73,000 cable and 5,000 Internet subscribers. Completion of the transaction, which is subject to FCC review and regulatory approval of the transfer of CCTV's cable franchise licenses, is expected to occur in early 2005.

John R. Muse, a founding Partner and the Chairman-designate of HMTF, said: "CCTV is an attractive opportunity to leverage our extensive experience investing in cable properties around the world. It is an established cable television platform to which we can add value in a number of ways through the implementation of our proven buy and build strategy."

Peter S. Brodsky, a Partner of HMTF, said: "By providing outstanding customer service, a wide selection of video channels and a robust high-speed data product, we believe that we can improve CCTV's penetration rate and increase the number of services provided to its customers, allowing CCTV to achieve its significant growth potential.

"We look forward to working with the CCTV management team, under the leadership of General Manager Edwin Stevenson, and in partnership with highly experienced HMTF-affiliated cable executives who will work with the company on an interim basis, to realize CCTV's potential," Mr. Brodsky said.

About HMTF

With approximately $11 billion under management, HMTF since 1989 has completed or currently has pending more than 400 transactions with a total capital value of approximately $50 billion. The firm is among the world's largest private equity investors in cable and media businesses, with current or past investments in Marcus Cable, Persona Inc. (Canada), Mandeville Cable (Argentina), Aster City Cable (Poland), Davivo International--which has joint or sole control of the Latin American MSOs CableVision (Argentina), InterCable (Venezuela), TV Cidade (Brazil), and Teledigital (Argentina)--and Grupo MVS Comunicaciones (Mexico). HMTF's principal offices are in Dallas and London.

Contacts

Kekst and Company
Roy Winnick or Mark Semer
212-521-4842 or 4802