Sale of Avenue Broadband Announced by MCG Capital

A definitive agreement with Telecommunications Management, LLC has been signed by Avenue Broadband LLC, a provider of cable television, high speed internet and digital telephone service. Systems in Indiana and Illinois are served by Avenue Broadband. All outstanding shares of Avenue Broadband LLC’s capital stock will be sold to Telecommunications Management. Avenue Broadband is a majority-owned control investment of MCG Capital Corporation. An announcement in this regard has been made by MCG Capital Corporation also known as MCG. Telecommunications Management, LLC is a wholly-owned subsidiary of NewWave Communications.

After transaction expenses, $50.4 million approximately will be received by MCG in cash in connection with the exit of this investment. Subject to satisfaction of customary closing conditions, the final closing of the sale transaction is expected to occur in March 2011. This will be also subject to satisfaction of regulatory approvals. MCG made its initial debt and equity investment in Avenue in December 2007.

In a release, Steven F. Tunney, senior president and CEO of MCG Capital said, “This sale, and the combination of the equity realization and repayment of our subordinated debt investment, is another step forward in our strategic plan to monetize equity investments to support the redeployment of capital into current yield-oriented investments to grow operating income and stockholder distributions."

NewWave Communications is a top company providing communications services. The company has its headquarters at Sikeston, Missouri. Smaller to mid-sized communities in Missouri, Tennessee, and Kentucky are offered video, voice and high-speed data services by NewWave Communications. The company also offers these services to smaller and mid-sized communities in Illinois, Indiana, and Arkansas.


Calvin Azuri is a contributing editor for TMCnet. To read more of Calvin’s articles, please visit his columnist page.

Edited by Jennifer Russell