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Time Warner Cable files for $100 million IPO
Shares being offered currently owned by bankrupt Adelphia; Time Warner will retain its majority stake in cable subsidiary.
By Reuters
Published: October 18, 2006, 5:41 AM PDT
Time Warner Cable, a subsidiary of Time Warner, on Wednesday filed with regulators for an initial public offering of $100 million in Class A common stock, all of which is being sold by bankrupt cable operator Adelphia Communications.
Time Warner Cable, which intends to list its stock on the New York Stock Exchange under the symbol "TWC," will not receive any of the proceeds from the stock sale, according to a filing with the U.S. Securities and Exchange Commission.
Time Warner Cable is the second-largest cable operator in the United States, the filing said, with more than 14 million customer relationships for one or more of its services as of June 30.
Time Warner and Comcast in July completed a deal to buy the assets of Adelphia, which were valued at about $17 billion.
Time Warner owns 82.7 percent of Time Warner Cable's Class A stock and 100 percent of its Class B stock, giving the company 90.6 percent total voting power. The figures will stay the same after the offering, the filing said.
Adelphia now owns 17.3 percent, or 155.9 million, of Time Warner Cable's Class A shares, giving it 9.4 percent total voting power. The filing did not state what its stake would be after the offering.
The filing also did not state how many Class A shares Adelphia will offer or their expected price.
For the six months ended June 30, Time Warner Cable earned $530 million, down from $598 million a year earlier, while revenue increased to $5.3 billion from $4.6 billion.
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