Consolidated Communications to Sell Iowa-based Heartland Telecommunications Company
May 03 2016 - 9:00AM
Consolidated Communications Holdings, Inc. (NASDAQ:CNSL)
(“Company”) has entered into a definitive agreement with Mutual
Telephone Company of Sioux Center, Iowa (Premier) and
Winnebago Cooperative Telecom Association (Winnebago) to divest its
Heartland Telecommunications Company of Iowa (Heartland) in order
for the Company to focus on its core regions.
“Both Premier and Winnebago are uniquely positioned to provide
exceptional service to customers in the rural areas of northwest
Iowa,” said Bob Udell, president and chief executive officer of
Consolidated Communications. “We expect this transaction will
benefit customers, who can count on continued high levels of
service and investment in their community from Premier and
Winnebago.”
Premier will acquire the Iowa exchanges of: Akron, Boyden,
Doon, Hawarden, Hull, Ireton, Rock Rapids, Rock Valley and
Sibley. Winnebago will acquire the Iowa exchanges of Bancroft
and Lakota.
“Premier has been, and always will be, committed to offering
exceptional voice, video and data services to our customers,” said
Doug Boone, chief executive officer of Premier. “The addition of
these nine exchanges is a natural fit to our existing service
territory and we pledge to serve these new customers with the same
cutting-edge technology and great customer service that Premier is
known for.”
“This acquisition is a positive development for Bancroft and
Lakota customers and our customer-owned company which will bring a
cooperative’s dedication to serving its customers and providing
important benefits to the communities,” said Mark Thoma, general
Manager of Winnebago. “We look forward to serving the
customers of Bancroft and Lakota who will become members of our
cooperative, with the rights and privileges of owners.”
The Company’s Heartland operation contributed approximately $7.0
million of revenue in fiscal 2015. The agreement is an all
cash transaction valued at approximately $22.5 million, subject to
certain contractual adjustments. The closing is subject to
customary regulatory approvals, which are expected to be completed
in the second half of 2016.
Charlesmead Advisors, LLC, served as exclusive advisor to
Premier and Winnebago on the transaction.
About Consolidated CommunicationsConsolidated
Communications Holdings, Inc. is a leading broadband and business
communications provider throughout its 11-state service area.
The company leverages its advanced fiber optic network and multiple
data centers to offer a wide range of communications solutions,
including data, voice, video, managed services, cloud computing and
wireless backhaul. Headquartered in Mattoon, Ill., the
Company has been providing services in many of its markets for more
than a century. Learn more at consolidated.com.
About Premier Communications Premier
Communications is the leading provider of voice, video and data
services in Northwest Iowa. With headquarters in Sioux Center, IA
and offices in Sanborn, IA and Le Mars, IA, Premier Communications
provides 22 communities with local and long distance digital
telephone service, high-speed Internet, cable television
programming and iWireless cellular service. For more information
visit www.mypremieronline.com.
About Winnebago Cooperative Telecom
AssociationWCTA is a telecommunications company
headquartered in Lake Mills, Iowa. Since the Cooperative’s
inception in 1950, more than 70 companies have merged into WCTA.
Today, WCTA utilizes the latest digital switching and fiber optic
technologies to deliver advanced telecommunications service,
Internet access, digital TV service, wireless service, computer and
data back-up services and long distance service to 25 communities
in northern Iowa and southern Minnesota. WCTA strives to be an
important part of each and every community we serve. As a
cooperative, WCTA is owned and governed by its members and a
member-elected Board of Directors.
Safe Harbor The Securities
and Exchange Commission (“SEC”) encourages companies to disclose
forward-looking information so that investors can better understand
a company’s future prospects and make informed investment
decisions. Certain statements in this press release are
forward-looking statements and are made pursuant to the safe harbor
provisions of the Securities Litigation Reform Act of 1995.
These forward-looking statements reflect, among other things,
our current expectations, plans, strategies, and anticipated
financial results. There are a number of risks,
uncertainties, and conditions that may cause our actual results to
differ materially from those expressed or implied by these
forward-looking statements. These risks and uncertainties
include a number of factors related to our business, including
economic and financial market conditions generally and economic
conditions in our service areas; various risks to shareholders of
not receiving dividends and risks to our ability to pursue growth
opportunities if we continue to pay dividends according to the
current dividend policy; various risks to the price and volatility
of our common stock; changes in the valuation of pension plan
assets; the substantial amount of debt and our ability to repay or
refinance it or incur additional debt in the future; our need for a
significant amount of cash to service and repay the debt and to pay
dividends on the common stock; restrictions contained in our debt
agreements that limit the discretion of management in operating the
business; regulatory changes, including changes to subsidies, rapid
development and introduction of new technologies and intense
competition in the telecommunications industry; risks associated
with our possible pursuit of acquisitions; system failures; losses
of large customers or government contracts; risks associated with
the rights-of-way for the network; disruptions in the relationship
with third party vendors; losses of key management personnel and
the inability to attract and retain highly qualified management and
personnel in the future; changes in the extensive governmental
legislation and regulations governing telecommunications providers
and the provision of telecommunications services;
telecommunications carriers disputing and/or avoiding their
obligations to pay network access charges for use of our network;
high costs of regulatory compliance; the competitive impact of
legislation and regulatory changes in the telecommunications
industry; and liability and compliance costs regarding
environmental regulations. A detailed discussion of these and other
risks and uncertainties that could cause actual results and events
to differ materially from such forward-looking statements are
discussed in more detail in our filings with the Securities and
Exchange Commission, including our reports on Form 10-K and Form
10-Q. Many of these circumstances are beyond our ability to
control or predict. Moreover, forward-looking statements
necessarily involve assumptions on our part. These
forward-looking statements generally are identified by the words
“believe,” “expect,” “anticipate,” “estimate,” “project,” “intend,”
“plan,” “should,” “may,” “will,” “would,” “will be,” “will
continue” or similar expressions. Such forward-looking
statements involve known and unknown risks, uncertainties and other
factors that may cause actual results, performance or achievements
of Consolidated Communications Holdings, Inc. and its subsidiaries
to be different from those expressed or implied in the
forward-looking statements. All forward-looking statements
attributable to us or persons acting on our behalf are expressly
qualified in their entirety by the cautionary statements that
appear throughout this press release. Furthermore,
forward-looking statements speak only as of the date they are made.
Except as required under the federal securities laws or the
rules and regulations of the Securities and Exchange Commission, we
disclaim any intention or obligation to update or revise publicly
any forward-looking statements. You should not place undue
reliance on forward-looking statements.
Company Contacts:
Matt Smith
VP of Finance & Treasurer
217-258-2959
matthew.smith@consolidated.com
Jennifer Spaude
Sr. Director of Corporate Communications
507-386-3765
Jennifer.spaude@consolidated.com
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