Brookfield Buys Cincinnati Bell
Brookfield buys Cincinnati Bell.
Brookfield Infrastructure buys Cincinnati Bell for $2.6 billion.
Cincinnati Bell delivers to residential and business customers over its fiber-optic and copper networks with high-speed internet, video, voice, and data. Enterprise customers across North America rely on CBTS and OnX, wholly-owned subsidiaries, for office communications systems and IT solutions. Cincy Bell owns and operates the leading data transmission and distribution network in Cincinnati and Hawaii, with a footprint of over 1.3 million homes, delivering core fiber broadband, video, and voice services. A network upgrade to next-generation fiber supports the growing demand for data and the advent of 5G. To date, Cincy Bell has future-proofed 50% of its network - 17,000 miles of dense metro and last-mile fiber. This ongoing upgrade allows it to provide utility-like services for broadband and data, generating stable and growing cash flows.
Sam Pollock of Brookfield Infrastructure said: ‘This investment is an opportunity for Brookfield Infrastructure to acquire a great franchise and leading fiber network operator in North America. We are excited to leverage our operating ability to work with the company's management team as it completes its industry-leading fiber-optic rollout plan. Cincinnati Bell is a great addition to our data infrastructure portfolio, and we expect it will contribute strong utility-like cash flows with predictable growth. Data has been one of the fastest-growing commodities in the world, and we expect this rapid growth to persist for the foreseeable future driven by many factors including greater smartphone penetration, increasing data consumption, advent of 5G networks and other new and evolving uses such as Internet of Things, AI and other applications that depend on low latency.’
Lynn Wentworth of Cincinnati Bell said; ‘After thoroughly reviewing a range of strategic alternatives and possible business opportunities for maximizing value, the Board determined this transaction was in the best interest of the company, its shareholders, and its customers. The transaction provides clear and immediate value at an attractive premium and is an exciting new chapter for Cincinnati Bell.’
Leigh Fox of Cincinnati Bell said: ‘The transaction strengthens our financial position, enabling accelerated investment in our strategic products that is not presently available to Cincinnati Bell as a standalone company. This will let us to drive growth and maximize value over the long term to the benefit of all our stakeholders. With Brookfield Infrastructure's support, we will be better positioned to deliver next-generation, integrated communications for our customers through an expanded fiber network. Brookfield Infrastructure provides strong industry ability with a proven track record of investment in critical data service and infrastructure. The financial, management, and other resources made available to Cincinnati Bell through the acquisition will enhance our networks and services to the benefit of our customers in Hawaii, Ohio, Kentucky, and Indiana, and across the nation.’
White & Case served as legal advisor to Brookfield. Financing will be provided by Bank of America, BMO Capital Markets, Citigroup, TD Securities, and Wells Fargo Securities.
Morgan Stanley and Moelis served as financial advisors to Cincinnati Bell. Cravath, Swaine & Moore, Morgan Lewis, and BosseLaw served as legal advisors.
Brookfield Infrastructure buys Cincinnati Bell for $2.6 billion.
Cincinnati Bell delivers to residential and business customers over its fiber-optic and copper networks with high-speed internet, video, voice, and data. Enterprise customers across North America rely on CBTS and OnX, wholly-owned subsidiaries, for office communications systems and IT solutions. Cincy Bell owns and operates the leading data transmission and distribution network in Cincinnati and Hawaii, with a footprint of over 1.3 million homes, delivering core fiber broadband, video, and voice services. A network upgrade to next-generation fiber supports the growing demand for data and the advent of 5G. To date, Cincy Bell has future-proofed 50% of its network - 17,000 miles of dense metro and last-mile fiber. This ongoing upgrade allows it to provide utility-like services for broadband and data, generating stable and growing cash flows.
Sam Pollock of Brookfield Infrastructure said: ‘This investment is an opportunity for Brookfield Infrastructure to acquire a great franchise and leading fiber network operator in North America. We are excited to leverage our operating ability to work with the company's management team as it completes its industry-leading fiber-optic rollout plan. Cincinnati Bell is a great addition to our data infrastructure portfolio, and we expect it will contribute strong utility-like cash flows with predictable growth. Data has been one of the fastest-growing commodities in the world, and we expect this rapid growth to persist for the foreseeable future driven by many factors including greater smartphone penetration, increasing data consumption, advent of 5G networks and other new and evolving uses such as Internet of Things, AI and other applications that depend on low latency.’
Lynn Wentworth of Cincinnati Bell said; ‘After thoroughly reviewing a range of strategic alternatives and possible business opportunities for maximizing value, the Board determined this transaction was in the best interest of the company, its shareholders, and its customers. The transaction provides clear and immediate value at an attractive premium and is an exciting new chapter for Cincinnati Bell.’
Leigh Fox of Cincinnati Bell said: ‘The transaction strengthens our financial position, enabling accelerated investment in our strategic products that is not presently available to Cincinnati Bell as a standalone company. This will let us to drive growth and maximize value over the long term to the benefit of all our stakeholders. With Brookfield Infrastructure's support, we will be better positioned to deliver next-generation, integrated communications for our customers through an expanded fiber network. Brookfield Infrastructure provides strong industry ability with a proven track record of investment in critical data service and infrastructure. The financial, management, and other resources made available to Cincinnati Bell through the acquisition will enhance our networks and services to the benefit of our customers in Hawaii, Ohio, Kentucky, and Indiana, and across the nation.’
White & Case served as legal advisor to Brookfield. Financing will be provided by Bank of America, BMO Capital Markets, Citigroup, TD Securities, and Wells Fargo Securities.
Morgan Stanley and Moelis served as financial advisors to Cincinnati Bell. Cravath, Swaine & Moore, Morgan Lewis, and BosseLaw served as legal advisors.
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