got the $$$ (Cablevision funds Voom plan)

[Seawaves]

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.

705 million in debt? More new debt to pay old debt. Now that's a great idea...lmao!

 

[mike123abc]

705 million in debt? More new debt to pay old debt. Now that's a great idea...lmao!

Essentially what this transaction does is rid cablevision of VOOM (via Rainbow Media). RM is essentially buying itself from CVC. RM has borrowed money on the open market, and and is buying itself from CVC plus it raised more money to finance itself for a year or two. RM has the money losing VOOM but it also has cash cow cable stations to support it.

 

[Dvlos]

RM has 3 networks it will use to generate revenue, I'm sure they will want to secure lots of finances to push Voom, if it could get the 1 million subs that they were talking about Voom would cease to be a money drain and start generating some income for them.

 

[Bruce]

That's a big if in 1,000,000 subs,and they(Voom) have a lot of other money drain issues.

 

[DrWho]

CBS HD East
CBS HD West
ABC HD EASt
ABC HD West
NBCDT East
NBCDT West

But those channels are very cool for people who want to see programming in areas they used to live.

I went to Voom and gave up my Chicago WGN station.

D* has WGN, Fox Sports out of Chicago and with those additonal channels, I may be able to watch a Bears Game feed.

In this wonderful world of sattelite, we should be exposed to much more content then Voom seems to want to offer.

 

[Dvlos]

then Voom seems to want to offer.

Hmmm.. D* has the capabilities to offer you more SD also, who wants more SD? Don't you think the reason Voom is getting a new Satellite in October is just that? To offer you more? Could it be possible that Voom could be nearing it's peak, but in the last few months added, NBCHD, USA, and for Florida an RSN, to me that's Voom wanting to offer more.

My god! Do you get WGN in Chicago in HD? No, moot issue as VOom customer if you ask me, unless you have the possibility of seeing some HD content once in a a while. As a paying customer for HD I don't want a company that's going to overload their Sats with a bunch of BS SD channels, so that when an HD channel comes out, there's no room for it. Like if Voom's executives are sitting around a mahogoney conference table going:

"Hey we got these contracts signed for INHD and HDNet for the next 5 years"

"Yeah but we already have 36+ HD channels"

"What about adding more RSNs and national OTA SD channels?"

"DId you not hear me say we already have 36+ HD channels, not to mention a huge number of Voom subscribers?!!?"

"You're right Al! Screw it we don't want to show more channels and gain an edge in the competition!"

"Yeah! All hail the Voom business model!"

 

[DrWho]

"My god! Do you get WGN in Chicago in HD? No,"

WGN OTA in Chicago does offer HD of home Cubs and Sox games.
Grant it, you would not get WGD HD over Voom Sattelite, just to have the channel would be nice, sice I gave it up to go to Voom.

Sorry, but it's a weakness with Voom currently.

Personally, I;d much rather have those Crappy SD channels, GTechTv, WGN, even the list of FSN channels D* offers, over the somewhat crappy HD Channels that make up Cinema 1-10. 3 Stooges is just about as good in SD as HD.

 

[Dvlos]

I don't think being the leader in SD is such a loss, however I'm sure they will offer at least one channel for your home shopping or tech channel, if possible it would be better to have a Tech channel or a shopping channel in HD though.. No matter what someone wants something else...

By the way it looks like the RSNs are coming and maybe Voom can make it so with a premium charge we can watch all the RSNs in the country BUT unlike D* Voom maybe adding HD companion versions of these channels for HD simulcasts.. Sounds like Voom is turning a weakness into a strength.