No. of Recommendations: 6

The cable, named the Cross-Sound Cable, was previously owned by Babcock and Brown, who bought the cable from the Cross Sound Cable Company in 2006.

As stated in the above release, the acquisition was 90% financed with debt.

When BIP acquired a bunch of assets from Babcock and Brown in the Prime acquisition, CSC and its debt came with them.

Upon the completion of the Prime acquistion, BIP put CSC, among other assets, on the balance sheet as held for sale. The assets were mostly canceled out by the debt against them, though.

Then last quarter, with the help of some institutional investors, BIP bought out the bank that held the financing at a significant discount, recapitalized the company and now owns a 23% stake in what I assume to be a debt-free version of CSC.

That is my understanding. If you have more questions, let me know.
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