TOP STORY - Cablevision said its Rainbow National Services subsidiary raised $1.75 billion in bank and bond financing. Net proceeds from the money move were distributed by RNS to its parent company, Rainbow Media Enterprises, and used to repay about $705 million of outstanding bank debt at Rainbow Media Holdings.
got the $$$ (Cablevision funds Voom plan)
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I wonder if Voom will use the surplus to rush and upgrade dishes and codecs, and launch a new marketing campaign. In addition to sinking some money into making their channels into HD. WE HD would be a big hit IMO and further expand HD by getting women involved.
You can bet your sweet bippy! I can't believe I just said that....God am I getting old!Dvlos said:
Cablevision funds Voom plan
Source
BY HARRY BERKOWITZ
STAFF WRITER
August 24, 2004
Cablevision Systems Corp. has finished arranging the financing of its Voom nationwide satellite TV venture, which it plans to spin off as a separate company next month.
The company said yesterday that it had closed on an offering of $800 million in junk bonds and arranged a $950-million bank credit line.
Wall Street analysts have been eager for the spinoff of the Voom venture - which they give little chance of success - to end the drain on Cablevision's finances.
Part of the financing was used to repay $705 million of outstanding bank debt at Rainbow Media Holdings, a unit of Cablevision that has helped fund Voom.
Another $661 million will be used to help fund the spun-off company, which in addition to Voom will include the cable channels AMC, WE: Women's Entertainment and Independent Film Channel. Profits from those channels will also help fund Voom and so will no longer contribute to Cablevision.
"While the planned spinoff ... will significantly curtail non-core capital spending (at Cablevision), the concurrent spinoff of the national content business (AMC, IFC and WE) will remove a meaningful amount of positive free cash flow from operating results as well," Moody's Investors Service said in a recent bond-rating analysis.
Voom, which launched in October, posted a loss of $136 million for the first half of 2004.
Cablevision has agreed to limit the additional amounts of investment that Voom may eat up.
But its funding needs have been increased by plans to possibly add more satellites to the one it launched last year and by leasing space on another company's satellites.
Source
BY HARRY BERKOWITZ
STAFF WRITER
August 24, 2004
Cablevision Systems Corp. has finished arranging the financing of its Voom nationwide satellite TV venture, which it plans to spin off as a separate company next month.
The company said yesterday that it had closed on an offering of $800 million in junk bonds and arranged a $950-million bank credit line.
Wall Street analysts have been eager for the spinoff of the Voom venture - which they give little chance of success - to end the drain on Cablevision's finances.
Part of the financing was used to repay $705 million of outstanding bank debt at Rainbow Media Holdings, a unit of Cablevision that has helped fund Voom.
Another $661 million will be used to help fund the spun-off company, which in addition to Voom will include the cable channels AMC, WE: Women's Entertainment and Independent Film Channel. Profits from those channels will also help fund Voom and so will no longer contribute to Cablevision.
"While the planned spinoff ... will significantly curtail non-core capital spending (at Cablevision), the concurrent spinoff of the national content business (AMC, IFC and WE) will remove a meaningful amount of positive free cash flow from operating results as well," Moody's Investors Service said in a recent bond-rating analysis.
Voom, which launched in October, posted a loss of $136 million for the first half of 2004.
Cablevision has agreed to limit the additional amounts of investment that Voom may eat up.
But its funding needs have been increased by plans to possibly add more satellites to the one it launched last year and by leasing space on another company's satellites.
It is being privately funded through the sale of bonds. To the best of my knowledge there will be no IPO (or publicly traded stock) at this time.
bow
Vurbano, I feel the party is just starting! With the influx of cash, VOOM should have enough cash flow to keep the doors open for the next 24 months...even without acquiring additional subscribers. Although the rates will likely increase to $49/$89 next year, I suspect we shall see additional HD/SD channels (sports too!), added services (HD PPV, DVR, ESPN Gameplan, etc), and a wide variety of promotions as the war to obtain & maintain subscribers begins. It will no longer be CableVision's VOOM project, it will be Rainbow DBS fighting to compete head-to-head with Cable, D* and E*.vurbano said:
VOOM could collapse like a house of cards. But so what? At last they will raise the HD bar a few notches and there will other viable HD choices at that time! If they fail to provide a reasonable service at a fair market price....then I'm outta here!
You guys should check the D* forum they got a nice thread talking about Voom's demise, with D* offering 24 HD Channels.... I find it funny that upon closer inspection the additions to D* include:
CBS HD East
CBS HD West
ABC HD EASt
ABC HD West
NBCDT East
NBCDT West
Yeah! I see a huge D* marketing campaign going.. WE HAVE 24 CHANNELS IN HD MUAHAHHAHAHA!!!! COME SEE THEM IN ALL THEIR OTA GLORY!! TWICE!
CBS HD East
CBS HD West
ABC HD EASt
ABC HD West
NBCDT East
NBCDT West
Yeah! I see a huge D* marketing campaign going.. WE HAVE 24 CHANNELS IN HD MUAHAHHAHAHA!!!! COME SEE THEM IN ALL THEIR OTA GLORY!! TWICE!
If VOOM fails, so be it. We all be running to E*/D*/Cable. Until that happens, I'll be enjoying the HD programming. I am not going to say much about the D* rumor. I have already posted my feeling there. The rumor deadline is September 30th to match V* and calls for the demise (or buy out) of V* by September 30th, 2004. If it happens, I'll be saving tons of money by switching to D* (not Geico). 
Dvlos said:
HBO-E
HBO-W
SHO-E
SHO-W
Starz-E
Starz-W
etc
they are not the only ones showing the same channels 2x
Sean Mota said:If VOOM fails, so be it. We all be running to E*/D*/Cable. Until that happens, I'll be enjoying the HD programming. I am not going to say much about the D* rumor. I have already posted my feeling there. The rumor deadline is September 30th to match V* and calls for the demise (or buy out) of V* by September 30th, 2004. If it happens, I'll be saving tons of money by switching to D* (not Geico).
And I just saved money on my car insurance !!
(LMAO)!!
Voom is going nowhere but up..its really funny reading all the posts from the doom sayers...
mike123abc said:
I know this, and those are premium channels though, not free OTA channels. However after the DVR hits, those duplicate channels will also be moot to those of us who get a DVR IMO. Personally I think if D* added all the premium channels to their HD lineup that would be a BIGGER selling point than all the duplicate OTA channels, which will benefit the few that live out in rural areas. IMO.
23 Aug 2004 09:33 ET DJ Rainbow Natl Raises $1.75B For Debt Payments, Investments
BETHPAGE, N.Y. (Dow Jones)--Cablevision Systems Corp. (CVC) said its Rainbow National Services LLC unit raised $1.75 billion through two notes offerings and a credit facility.
As a Cablevision spinoff, Rainbow National will operate as a Rainbow Media Enterprises unit. Rainbow Media will include Cablevision's satellite television business, Voom.
In a press release Monday, Cablevision said Rainbow Media plans to use part of the proceeds to repay about $705 million of its debt, with the remaining proceeds of about $661 million for investments.
Rainbow National closed $300 million of its 8-3/4% senior notes due 2012, and $500 million of its 10-3/8% senior subordinated notes due 2014.
The company also completed a $950 million senior secured credit facility.
BETHPAGE, N.Y. (Dow Jones)--Cablevision Systems Corp. (CVC) said its Rainbow National Services LLC unit raised $1.75 billion through two notes offerings and a credit facility.
As a Cablevision spinoff, Rainbow National will operate as a Rainbow Media Enterprises unit. Rainbow Media will include Cablevision's satellite television business, Voom.
In a press release Monday, Cablevision said Rainbow Media plans to use part of the proceeds to repay about $705 million of its debt, with the remaining proceeds of about $661 million for investments.
Rainbow National closed $300 million of its 8-3/4% senior notes due 2012, and $500 million of its 10-3/8% senior subordinated notes due 2014.
The company also completed a $950 million senior secured credit facility.
