Cable co. sells to reduce its debt
Cox Communications, the third- largest U.S. cable television operator, may sell four cable systems to reduce debt after spending $8.5 billion to take the company private.
Cox, controlled by Cox Enterprises, is considering the sale of cable systems in North Carolina, west Texas and Humboldt County, the Atlanta-based company said Monday. Cox also may sell a fourth system that serves Texas, Louisiana, Arkansas, Oklahoma, Mississippi and Missouri. The four systems have 900,000 subscribers.
“We had to look at different options for how we can reduce our debt since the privatization of our company,” said spokesman Bobby Amirshahi. “We spent $8.5 billion on stock buybacks to privatize the company. Having that new debt is the No. 1 reason to do this.”
Cox, which was taken private in December, retained Citigroup Global Markets, Lehman Brothers and JPMorgan Securities as advisers on the sale.