Cable One’s Formation of Clearwave Fiber in Partnership with GTCR, Stephens Capital Partners and The Pritzker Organization

On December 20, 2024, Cable One, Inc. (“Cable One”) announced that it has entered into definitive agreements to amend its strategic partnership with Mega Broadband Investments (“MBI”). The strategic partnership provides Cable One with a path for a potential acquisition of all the MBI equity it does not already own pursuant to put option and call option arrangements between Cable One and the other MBI equity holders. The purchase price payable by Cable One upon any exercise of the put option or call option will be determined based on MBI’s future performance and other factors. The transaction is valued at approximately $1.5 billion to $1.7 billion, inclusive of upfront payments made by Cable One and initial estimates of option exercise closing payments and related debt assumption, based on an assumed October 1, 2026 option exercise closing. Cable One is a leading broadband communications provider serving more than 1 million residential and business customers across 24 states. MBI is a leading provider of broadband services across the Southeast, Northwest and Mid‑South United States and offers an extensive range of broadband, fiber connectivity, cable television and voice services for commercial and residential customers. Cravath is representing Cable One in connection with this transaction.

Cravath represented Cable One, Inc. in connection with $2.8 billion of amended and restated senior secured credit facilities provided by a syndicate of commercial banks and other lenders. The credit facilities consist of $1.8 billion of term loan facilities and a $1.0 billion revolving credit facility. Cable One is a leading broadband communications provider serving more than 1.1 million residential and business customers across 24 states. The transaction closed on February 22, 2023.