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SEC Filings

424B1
RENAISSANCE MEDIA GROUP LLC filed this Form 424B1 on 09/10/1998
Entire Document
 
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                                  BUSINESS
 
GENERAL
 
  The Company was formed to acquire, operate and develop medium-sized cable
television systems. The Company acquired six cable television Systems from
Time Warner on April 9, 1998. The Systems are clustered in southern Louisiana
and western Mississippi (the Louisiana Systems) and western Tennessee (the
Tennessee System) and, as of June 30, 1998, passed approximately 180,561 homes
and served approximately 126,985 subscribers. The Company is the 4th largest
cable television system operator in Louisiana and the 5th largest cable
television system operator in Tennessee based upon the Systems' numbers of
subscribers at June 30, 1998.
 
  The Guarantor and the Obligors were formed in 1998 by Holdings. Holdings is
owned by the Morgan Stanley Entities, Time Warner and the Management
Investors, who have an average of 17 years of experience in the cable
television industry. At CVI, the Management Investors were largely responsible
for the management of 55 cable television systems serving 600 communities in
18 states, including operating the Louisiana Systems for seven years and the
Tennessee System for nine years. In addition, the Company's regional
management has significant experience in the critical functions of operations,
management, sales, marketing, back office, finance and regulatory affairs.
 
  The Company intends to increase its subscriber base and operating cash flow
by pursuing cable television system acquisitions, improving and upgrading its
technical plant and expanding its service offerings. The Company will pursue
selective acquisitions in markets which are contiguous to the Systems and in
non-contiguous mid-sized markets serving more than 30,000 subscribers where
local or regional clusters can be formed. The Company believes that by
clustering systems it will be able to realize economies of scale, such as
reduced payroll, reduced billing and technical costs per subscriber, reduced
advertising sales costs, increased local advertising sales, more efficient
roll-out and utilization of new technologies and consolidation of its customer
service functions. The Company plans to improve and upgrade its technical
plant, which should allow it to provide a wide array of new services and
service tiers, as well as integrate new interactive features into advanced
analog and digital set-top consumer equipment. The Company also plans to
develop and provide new cable and broadband services and develop ancillary
businesses including digital video and high speed Internet access services.
 
  The Guarantor's and the Obligors' principal executive offices are located at
One Cablevision Center, Suite 100, Ferndale, New York 12734 and the telephone
number is (914) 295-2600.
 
BUSINESS STRATEGY
 
  The Company's strategy is to increase its revenues and EBITDA by acquiring,
operating and developing cable television systems and capitalizing on the
expertise of management, as well as the Company's relationship with the
Management Investors and Time Warner. The key components of the Company's
strategy include the following:
 
  Pursue Strategic Acquisitions. Management believes that attractive
acquisition opportunities will be available as large cable television system
operators divest non-strategic assets and small operators sell their systems.
The Company intends to pursue system acquisitions in markets which are
contiguous to the Systems and in non-contiguous markets serving more than
30,000 subscribers where local or regional clusters can be formed. The Company
believes that by clustering systems it will be able to realize economies of
scale, such as reduced payroll, reduced billing and technical costs per
subscriber, reduced advertising sales costs, increased local advertising
sales, more efficient roll-out and utilization of new technologies and
consolidation of customer service functions. The Management Investors'
experience in operating cable television systems in urban, suburban and rural
markets will enable the Company to pursue a wide range of potential
acquisition opportunities.
 
 
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