Pegasus selling last cable systems

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Pegasus Communications Corp. is clearing out its cable systems, agreeing to sell systems serving 55,000 subscribers in Puerto Rico to Centennial Cellular for $170 million. The deal, brokered by Waller Capital Corp., will leave Pegasus with its hefty DirecTV rural dealership operation and 10 U.S. TV stations.

The systems are largely in rural parts of Puerto Rico and have relatively few customers, penetrating just 32% of homes passed. Nevertheless, the price comes to $3,100 per subscriber and about 17 times annualized cash flow.

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