Frontier Communications Corp. Announces HSR Clearance for Its Acquisition of Verizon Wireline Operations in California, Flori...
May 11 2015 - 2:21PM
Business Wire
Frontier Communications Corporation
(NASDAQ:FTR) today announced that the Federal Trade
Commission has granted early termination of the required
waiting period under the Hart-Scott-Rodino Antitrust Improvements
Act of 1976, as amended, with respect to Frontier's proposed
acquisition of Verizon’s (NYSE: VZ) wireline operations
providing services to residential, commercial and wholesale
customers in California, Florida and Texas. The definitive
agreement between Frontier and Verizon was
announced February 5, 2015.
The expiration of the HSR waiting period
satisfies one of the conditions of the completion of the
transaction, which remains subject to other customary conditions,
including the approval of the Federal Communications
Commission and certain governmental authorities in the states
covered. The transaction is expected to close in the first half of
2016.
"We are pleased about the news from
the Federal Trade Commission and look forward to
providing service in more areas in California and Florida and to
serving new markets in Texas," said Dan McCarthy, president
and chief executive officer of Frontier Communications.
About Frontier Communications
Frontier Communications
Corporation (NASDAQ:FTR) offers broadband, voice, video,
wireless Internet data access, data security solutions, bundled
offerings, specialized bundles for residential customers, small
businesses and home offices and advanced business communications
for medium and large businesses in 28 states. Frontier's
approximately 17,800 employees are based entirely in the
United States. More information is available
at www.frontier.com.
Forward-Looking Statements
This document contains "forward-looking
statements," related to future, not past, events. Forward-looking
statements address our expected future business and financial
performance and financial condition, and contain words such as
"expect," "anticipate," "intend," "plan," "believe," "seek," "see,"
"will," "would," or "target." Forward-looking statements by their
nature address matters that are, to different degrees, uncertain.
For us, particular uncertainties that could cause our actual
results to be materially different than those expressed in our
forward-looking statements include: risks related to the pending
acquisition of properties from Verizon, including our ability to
complete the acquisition of such operations, our ability to
successfully integrate operations, our ability to realize
anticipated cost savings, sufficiency of the assets to be acquired
from Verizon, our ability to migrate Verizon’s operations from
Verizon owned and operated systems and processes to our owned and
operated systems and processes successfully, failure to enter into
or obtain, or delays in entering into or obtaining, certain
agreements and consents necessary to operate the acquired business
as planned, failure to obtain, delays in obtaining or adverse
conditions contained in any required regulatory approvals for the
acquisition, and increased expenses incurred due to activities
related to the transaction; the ability of the banks that have
provided the bridge financing commitments to meet their obligations
thereunder in the event the Company is required to draw on the
bridge financing; our ability to raise, on terms reasonable and
acceptable to us, all or a portion of the financing to replace the
current bridge financing commitments with debt and equity financing
to complete the Verizon Transaction prior to the closing of such
transaction, which, if the Verizon Transaction is ultimately not
consummated or is delayed, could require us to pay significant
interest expense, dividends and other costs in connection with the
financing without achieving the expected benefits of the Verizon
Transaction; risks related to the recently-concluded Connecticut
Acquisition, including our ability to fully realize anticipated
synergies; our ability to meet our debt and debt service
obligations; competition from cable, wireless and other wireline
carriers and the risk that we will not respond on a timely or
profitable basis; our ability to successfully adjust to changes in
the communications industry, including the effects of technological
changes and competition on our capital expenditures, products and
service offerings; reductions in revenue from our voice customers
that we cannot offset with increases in revenue from broadband and
video subscribers and sales of other products and services; our
ability to maintain relationships with customers, employees or
suppliers; the impact of regulation and regulatory, investigative
and legal proceedings and legal compliance risks; continued
reductions in switched access revenues as a result of regulation,
competition or technology substitutions; the effects of changes in
the availability of federal and state universal service funding or
other subsidies to us and our competitors; our ability to
effectively manage service quality in our territories and meet
mandated service quality metrics; our ability to successfully
introduce new product offerings; the effects of changes in
accounting policies or practices, including potential future
impairment charges with respect to our intangible assets; our
ability to effectively manage our operations, operating expenses,
capital expenditures, debt service requirements and cash paid for
income taxes and liquidity, which may affect payment of dividends
on our common shares; the effects of changes in both general and
local economic conditions on the markets that we serve; the effects
of increased medical expenses and pension and postemployment
expenses; the effects of changes in income tax rates, tax laws,
regulations or rulings, or federal or state tax assessments; our
ability to successfully renegotiate union contracts; changes in
pension plan assumptions, interest rates, regulatory rules and/or
the value of our pension plan assets, which could require us to
make increased contributions to the pension plan in 2015 and
beyond; adverse changes in the credit markets or in the ratings
given to our debt securities by nationally accredited ratings
organizations, which could limit or restrict the ability, or
increase the cost, of financing to us; the effects of state
regulatory cash management practices that could limit our ability
to transfer cash among our subsidiaries or dividend funds up to the
parent company; the effects of severe weather events or other
natural or man-made disasters, which may increase our operating
expenses or adversely impact customer revenue; the impact of
potential information technology or data security breaches or other
disruptions; and the other factors that are described in our
filings with the U.S. Securities and Exchange Commission, including
our reports on Forms 10-K and 10-Q. These risks and uncertainties
may cause our actual future results to be materially different than
those expressed in our forward-looking statements. We do not
undertake to update or revise these forward-looking statements.
INVESTORFrontier Communications CorporationLuke Szymczak,
203-614-5044Vice President, Investor
Relationsluke.szymczak@ftr.comorMEDIAAVP, Corp. Comm.Brigid
Smith, 203-614-5042brigid.smith@ftr.com
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