Consolidated Communications Announces Definitive Agreement to Sell its Virginia Properties
November 27 2017 - 08:30AM
Consolidated Communications Holdings, Inc. (NASDAQ:CNSL)
(“Company”) has entered into an agreement to sell its Virginia
properties, Peoples Mutual Telephone Company and Peoples Mutual
Long Distance Company, to RiverStreet Management Services, LLC, dba
RiverStreet Networks, a subsidiary of Wilkes Communications.
The divestiture allows the Company to continue to focus on its
core regions and its integration of FairPoint Communications.
Peoples operates as a local exchange carrier in Virginia to the
communities of Gretna, Hurt, Renan and Sandy Level providing
telecommunications services to residents and businesses.
The Company’s Virginia operations contributed approximately $6.5
million of revenue in fiscal 2016. The agreement is an all
cash transaction valued at approximately $21 million, subject to
certain contractual adjustments. The closing is subject to
customary regulatory approvals, which are expected to be completed
in the first quarter of 2018.
“We are very excited to enter into this agreement and expand our
service area into Virginia strengthening our position as a
technology partner in the region,” said Eric Cramer, president and
chief executive officer of Wilkes Communications and RiverStreet
Networks. “We look forward to serving the customers of
Virginia and expect a seamless transition upon closing.”
Charlesmead Advisors, LLC, served as exclusive financial advisor
to Consolidated Communications on the transaction.
About Consolidated Communications
Consolidated Communications Holdings, Inc. (NASDAQ:CNSL) is a
leading broadband and business communications provider serving
consumers, businesses of all sizes, and wireless companies and
carriers, across a 24-state service area. Leveraging its
advanced fiber optic network spanning more than 36,000 fiber route
miles, Consolidated Communications offers a wide range of
communications solutions, including: data, voice, video, managed
services, cloud computing and wireless backhaul.
Headquartered in Mattoon, Ill., Consolidated Communications has
been providing services in many of its markets for more than a
century.
About RiverStreet Networks Headquartered in
Wilkesboro, NC, Wilkes Communications started in 1951 as a local
cooperative to serve rural Wilkes County, NC. After
completing an award-winning Fiber-to-The-Home network to all of its
members, RiverStreet Networks, a tradename of Wilkes
Communications, was developed to offer the latest in technologies
to areas outside of the traditional Cooperative market. Wilkes
Communications and RiverStreet Networks now serve residential and
commercial subscribers in parts of 26 counties in North Carolina
with offerings including: high speed Internet, digital television,
voice, security, VoIP and business systems.
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 communication 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 our ability to
successfully integrate FairPoint Communications, Inc.’s operations
and realize the synergies from the integration, as well as 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 stockholders 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 our 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;
cyber-attacks, information or security breaches or technology
failure of ours or of a third party; 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; new or changing tax laws
or regulations; 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
SEC, 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
communication. 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
SEC, 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.
Contacts:
Lisa Hood, Investor
Relations
Phone: 844-909-2675 Lisa.hood@consolidated.com
Jennifer Spaude, Media RelationsPhone:
507-386-3765Jennifer.spaude@consolidated.com
Eric CramerPhone: 336-973-6112EricCramer@wilkestmc.net
Amanda PerryPhone:
336-973-6106AmandaPerry@wilkestmc.net
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