Court blocks Cable One's Mega Broadband acquisition bid

Cable One, Inc. (NYSE: CABO) said a U.S. federal court issued a temporary restraining order on Oct. 9, 2026, blocking the company from completing its planned acquisition of the remaining 55% stake in Mega Broadband Investments Holdings LLC that it does not currently own.

The order was issued by the U.S. District Court for the Southern District of New York following a complaint filed by CoBank, ACB, a lender under Cable One's existing credit agreement. CoBank alleges that Cable One's payment of the Mega Broadband purchase price would constitute a constructive fraudulent transfer and is seeking an injunction to prevent the deal from closing.

Cable One said the restraining order was entered before it had any opportunity to appear in court. The company said it "strongly believes CoBank's claims are incorrect as a matter of law" and intends to contest them, though it offered no assurances on timing or outcome.

Under the terms of the acquisition agreement, Cable One is not obligated to close the transaction while any legal restraint remains in effect.

Separately, Cable One said it has reached an agreement in principle on material terms with GTCR LLC, certain existing lenders, and a group of private lending institutions on a refinancing package. The deal is expected to extend and reduce the company's revolving credit facility, settle a related put option, and fully repay its B-4 term loan. Cable One said the refinancing would address $2.45 billion in current obligations and near-term debt maturities while providing liquidity for operations.

The refinancing is contingent on resolution of the restraining order or any other applicable legal restraint. Cable One cautioned that no definitive financing agreements have been signed and that there is no guarantee any financing transaction will be completed.

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