W
williamhunteman
Guest
Original poster
August 24, 2004
Cablevision Systems Corp. has finished arranging the financing of its
Voom nationwide satellite TV venture, which it plans to spin off as a
separate company next month.
The company said yesterday that it had closed on an offering of $800
million in junk bonds and arranged a $950-million bank credit line.
Wall Street analysts have been eager for the spinoff of the Voom
venture - which they give little chance of success - to end the drain
on Cablevision's finances.
Part of the financing was used to repay $705 million of outstanding
bank debt at Rainbow Media Holdings, a unit of Cablevision that has
helped fund Voom.
Another $661 million will be used to help fund the spun-off company,
which in addition to Voom will include the cable channels AMC, WE:
Women's Entertainment and Independent Film Channel. Profits from those
channels will also help fund Voom and so will no longer contribute to
Cablevision.
"While the planned spinoff ... will significantly curtail non-core
capital spending (at Cablevision), the concurrent spinoff of the
national content business (AMC, IFC and WE) will remove a meaningful
amount of positive free cash flow from operating results as well,"
Moody's Investors Service said in a recent bond-rating analysis.
Voom, which launched in October, posted a loss of $136 million for the
first half of 2004.
Cablevision has agreed to limit the additional amounts of investment
that Voom may eat up.
But its funding needs have been increased by plans to possibly add
more satellites to the one it launched last year and by leasing space
on another company's satellites.
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Cablevision Systems Corp. has finished arranging the financing of its
Voom nationwide satellite TV venture, which it plans to spin off as a
separate company next month.
The company said yesterday that it had closed on an offering of $800
million in junk bonds and arranged a $950-million bank credit line.
Wall Street analysts have been eager for the spinoff of the Voom
venture - which they give little chance of success - to end the drain
on Cablevision's finances.
Part of the financing was used to repay $705 million of outstanding
bank debt at Rainbow Media Holdings, a unit of Cablevision that has
helped fund Voom.
Another $661 million will be used to help fund the spun-off company,
which in addition to Voom will include the cable channels AMC, WE:
Women's Entertainment and Independent Film Channel. Profits from those
channels will also help fund Voom and so will no longer contribute to
Cablevision.
"While the planned spinoff ... will significantly curtail non-core
capital spending (at Cablevision), the concurrent spinoff of the
national content business (AMC, IFC and WE) will remove a meaningful
amount of positive free cash flow from operating results as well,"
Moody's Investors Service said in a recent bond-rating analysis.
Voom, which launched in October, posted a loss of $136 million for the
first half of 2004.
Cablevision has agreed to limit the additional amounts of investment
that Voom may eat up.
But its funding needs have been increased by plans to possibly add
more satellites to the one it launched last year and by leasing space
on another company's satellites.
------------------------ Yahoo! Groups Sponsor --------------------~-->
$9.95 domain names from Yahoo!. Register anything.
http://us.click.yahoo.com/J8kdrA/y20IAA/yQLSAA/EyMolB/TM
--------------------------------------------------------------------~->
Yahoo! Groups Links
<*> To visit your group on the web, go to:
http://groups.yahoo.com/group/VOOM/
<*> To unsubscribe from this group, send an email to:
VOOM-unsubscribe@yahoogroups.com
<*> Your use of Yahoo! Groups is subject to:
http://docs.yahoo.com/info/terms/
