KNOL » Topics » Recent Developments

These excerpts taken from the KNOL 10-K filed Mar 14, 2008.

Recent Developments

In January 2008, we acquired Graceba Total Communications Group, Inc. (Graceba), a voice, video and high-speed Internet broadband services provider to residential and business customers in Dothan, Alabama. The

 

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$75 million transaction was funded with the payment of $16 million of cash on hand and the proceeds of a $59 million incremental term loan facility under the Company’s existing credit facility. The incremental debt bears interest at LIBOR plus 2.75% and provides for 1% principal amortization annually with the balance due on June 30, 2012. The company has fixed the floating LIBOR rate at 3.995% through an interest rate swap contract. See Note 14 of the “Notes to Consolidated Financial Statements” elsewhere in this annual report.

Recent Developments

In
January 2008, we acquired Graceba Total Communications Group, Inc. (Graceba), a voice, video and high-speed Internet broadband services provider to residential and business customers in Dothan, Alabama. The

 


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Index to Financial Statements



$75 million transaction was funded with the payment of $16 million of cash on hand and the proceeds of a $59 million incremental term loan facility under the
Company’s existing credit facility. The incremental debt bears interest at LIBOR plus 2.75% and provides for 1% principal amortization annually with the balance due on June 30, 2012. The company has fixed the floating LIBOR rate at 3.995%
through an interest rate swap contract. See Note 14 of the “Notes to Consolidated Financial Statements” elsewhere in this annual report.

SIZE="2">Website Access to SEC Filings

The Company makes its SEC filings, including its annual report on Form 10-K, quarterly reports
on Form 10-Q, current reports on Form 8-K, and any amendments to those reports, available free of charge on the Company’s Internet website, www.knology.com, as soon as reasonably practicable after the reports are electronically filed with or
furnished to the SEC.

This excerpt taken from the KNOL 10-Q filed May 9, 2007.

Recent Developments

On April 3, 2007, the Company completed its acquisition of PrairieWave Holdings, Inc., a voice, video and high-speed internet broadband services provider in the Rapid City and Sioux Falls, South Dakota regions, as well as portions of Minnesota and Iowa. The Company’s purchase of PrairieWave Holdings, Inc. is a strategic acquisition that combines companies with similar business models and philosophies such as:

 

   

operating in secondary and tertiary markets

 

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servicing bundled customers

 

   

providing solid financial margins

 

   

delivering industry-leading customer service

The Company used the proceeds of the Amended and Restated Credit Agreement to fund the $255.0 million purchase price and related transaction costs of the PrairieWave acquisition, as well as refinance all amounts outstanding under the Company’s existing credit facilities dated June 29, 2005. The Amended and Restated Credit Agreement provides for a $580.0 million credit facility, consisting of a $555.0 million first lien term loan and a $25.0 million revolving credit facility. The first term loan bears interest at LIBOR plus 2.25% and amortizes at a rate of 1.0% per annum, payable quarterly, with a June 30, 2012 maturity date.

On April 18, 2007, the Company unwound its existing interest rate cap agreement for $927,000. The Company entered into a new swap contract on a notional amount of $555.0 million amortizing 1% annually that fixes 100% of the floating rate at 4.977%. The hedge agreement was effective May 3, 2007 with a June 30, 2010 termination date.

This excerpt taken from the KNOL 10-K filed Mar 15, 2007.

Recent Developments

In January 2007, we entered into a definitive agreement to acquire the stock of PrairieWave Holdings, Inc. (“PrairieWave”) a video, voice and high-speed Internet broadband services provider in South Dakota, as well as portions of Minnesota and Iowa. In 2006, PrairieWave had revenues totaling $88.3 million and as of December 31, 2006, PrairieWave’s network passed approximately 113,000 homes and had approximately

 

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157,000 business and residential connections. We will pay a cash consideration of $255 million, subject to certain closing adjustments, for the transaction and have obtained a fully underwritten debt financing commitment from Credit Suisse for the transaction. We expect to close the transaction during the second quarter of 2007, subject to the satisfaction of closing conditions, including receipt of regulatory approvals with respect to the municipal franchises.

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