Cable-industry veteran Neil McHugh closed on his first cable-systems deal in
nearly four years, agreeing to purchase properties in Mississippi with about
25,000 subscribers from Galaxy Communications Inc.
The systems are located in Oxford, New Albany, Booneville, Amory, Aberdeen
and portions of Lee County.
Terms of the deal were not disclosed.
McHugh, who had been president of Vista Communications Inc., sold that
company's last system to Charter Communications Inc. in 1998. But last year, he
started a new cable venture called Vista III Media to acquire systems in the
Southeast.
Vista III -- which is backed by Boston-based private-equity firm Boston
Ventures -- had been negotiating with Galaxy on the systems since August.
Communications Equity Associates LLC senior vice presidents Ed Frazier and
Brian Sweeney introduced the parties and advised on the transaction.
Galaxy, which filed for Chapter 11 bankruptcy protection in September,
reached a deal with its bondholders later that same month to swap its debt for
equity.
According to the deal, Galaxy bondholders -- mainly Romulus Holdings Inc., a
New Rochelle, N.Y.-based investment fund -- received about 97 percent of
Galaxy's equity.
