Cogeco Câble inc.
TSX : CCA

August 03, 2006 23:59 ET

Cogeco Cable completes acquisition of Cabovisao - Televisao por Cabo, S.A.

MONTREAL, Aug. 3 - Cogeco Cable Inc. (TSX: CCA), the second
largest cable operator in both Ontario and Québec based on the number of basic
cable service customers served, announced today that it has completed its
previously announced acquisition of Cabovisao - Televisao por Cabo, S.A
(Cabovisao), the second largest cable operator in Portugal.

"The completion of this acquisition represents a significant step for
Cogeco Cable in our strategy to secure growth opportunities for our
shareholders, " said Louis Audet, president and chief executive officer of
Cogeco Cable. "Today, we significantly increase our knowledge by welcoming
more than 500 experienced employees from Cabovisao - individuals who know the
Portuguese marketplace and Cabovisao products. As a result of the acquisition,
we also now have a top of the class two-way network serving our Portuguese
clients on which we can layer new services to fulfil their current and future
telecommunications needs."

Mr. Audet continued: "This acquisition is in accordance with the external
growth strategy announced by Cogeco Cable last October. We are now squarely
focused on quickly seizing the attractive opportunities this transaction has
created for us to increase top-line growth, to increase customer satisfaction
and to solidify our competitive position while soundly controlling cost. With
the Cabovisao acquisition now complete, Cogeco Cable is a stronger, more
broadly based company than ever before. We are looking forward to delivering
on the promise of this acquisition and to building value for our
shareholders."

Through acquisition subsidiaries, Cogeco Cable had purchased on an agreed
enterprise value of approximately 465 million euros, all the shares and all
senior secured debt of Cabovisao, and provided for the reimbursement of
certain other specified liabilities of Cabovisao. The final purchase price
will be determined following completion of a post-closing working capital
adjustment.

As anticipated, Cogeco Cable Inc. concluded as of July 28, 2006 an
amended and restated credit agreement providing for a CDN $900 million 5-year
bank credit facility with a group of financial institutions. This facility is
composed of three tranches: a revolving tranche of CDN $ 725 million maturing
on July 28, 2011; a non-revolving tranche of CDN $ 25 million equivalent in
euros maturing on July 28, 2011; and a non-revolving tranche of CDN
$150 million maturing on July 28, 2011 and principal reductions required are:
CDN $15 million on July 28, 2008, CDN $22.5 million on July 28, 2009, CDN
$37.5 million on July 28, 2010 and CDN $75 million on July 28, 2011. This
facility is secured pursuant to a bond trust deed between the corporation and
Computershare Trust Company of Canada, as bond trustee, and various other
security documentation in favour of the bond trustee, including a pledge of
the shares of Cabovisao - Televisao por Cabo and of other subsidiaries of the
corporation.

ABOUT COGECO CABLE

Cogeco Cable (www.cogeco.ca), a telecommunications company offering a
diverse range of services to its customers in Canada and in Portugal, is the
second largest cable operator in Ontario, Québec and Portugal in terms of the
number of basic service customers served. The Corporation invests in
state-of-the-art broadband network facilities, delivers a wide range of
services over these facilities with great speed and reliability at attractive
prices, and strives to provide both superior customer care and growing
profitability to satisfy its customers' varied electronic communication needs.
Through its two-way broadband cable infrastructures, Cogeco Cable provides its
residential and commercial customers with analog and digital video and audio
services, high-speed Internet access as well as telephony services. The
Corporation provides about 1,511,693 revenue-generating units (RGU)(1) to
approximately 1,469,009 homes passed(1) in its Canadian service territory and
611,204 RGUs(2) to approximately 820,309 homes passed(2) in its Portuguese
service territory. Cogeco Cable's subordinate voting shares are listed on the
Toronto Stock Exchange (CCA).

____________________________
(1) As at May 31, 2006
(2) As at March 31, 2006

Contact Information

  • For further information: Pierre Gagné, Vice President, Finance and Chief
    Financial Officer, (514) 874-2600; Marie Carrier, Director, Corporate
    Communications, (514) 874-2600