NASSAU, BAHAMAS – BISX-listed CBL Group has announced that it has closed on a definitive agreement to sell its Florida based operation Summit Broadband to Grain Management LLC in a carve out transaction for $301,500,000 after closing adjustments.
The agreement follows a multiple stage bid process led by RBC Capital markets.
President and CEO of CBL Group, Franklyn Butler, said: “The sale of Summit Broadband is now complete following the previously announced sales agreement executed last August with Grain Management LLC.
“Final negotiations and due diligence continued over the last five months, I am delighted that the sale is now complete at $301.5 million. It is a phenomenal start to 2020 as it will allow us to focus our resources on REV and ALIV, our core Bahamian operations.”
Butler said: “At the same time, we will be able to deleverage the group’s balance sheet, a key priority for the Group. While we had some closing adjustments from the initial announced price, I am pleased with the final EBITDA multiple and value we unlocked from our investment in the Florida market.”
CBL Group has undergone tremendous growth over the last six years and the performance of Summit Broadband has proved significant in contributing to these results. Again, I wish to personally thank the management and staff at Summit Broadband for their contribution to CBL Group performance over the years.
Ross McDonald, CBL Group Chairman added: “The completion of this sale of Summit Broadband unlocks the value created by the CBL Group’s management team over the past six years and validates the Board’s decision to be the first Bahamian public company to invest in the US market.”
The sale process was conducted by RBC Capital Markets through its Denver and New York based offices.
TD Securities served as financial advisor to Grain Management in the transaction, Alston & Bird LLP served as legal counsel, and the Direct Lending team at Deutsche Bank provided committed debt financing for the transaction.
Butler said: “I want to remind the public that the CBL Group is the country’s only 100 per cent Bahamian-owned telecommunications operator and we remain focused on delivering the best choice, value, network and experience for internet, mobile/fixed voice and TV – for both corporate and residential customers.
“Right now more than at any other time, the future is extremely bright for those that wish to use, invest in, and work within the REV and ALIV operations. Now, with the sale of Summit Broadband complete, we are truly Bahamian and truly Bahamian focused and we are building a better future for the Bahamas, now.”