Alaska Communications Announces Tender Offer for Outstanding 6.25% Convertible Notes Due 2018
March 17 2017 - 8:55AM
Business Wire
Alaska Communications Systems Group, Inc. (NASDAQ: ALSK) (the
“Company”) today announced a tender offer (the “Tender Offer”) to
purchase any and all of its outstanding 6.25% Convertible Notes due
2018 (the “Notes”). As of March 17, 2017, there were $94.0 million
aggregate principal amount of the Notes outstanding.
Upon the terms and subject to the conditions set forth in the
Company’s Offer to Purchase, dated March 17, 2017 (the “Offer
to Purchase”), and the related Letter of Transmittal, the Company
is offering to pay, for cash, an amount equal to $1,025 per $1,000
principal amount of Notes purchased. The Tender Offer will expire
at 12:00 midnight, New York City time, on April 14, 2017 (one
minute after 11:59 p.m., New York City time, on April 13, 2017), or
any other date and time to which the Company extends such Tender
Offer (such date and time, as it may be extended, the “Expiration
Date”), unless earlier terminated.
The Tender Offer is subject to the satisfaction or waiver of
certain conditions, as described in the Offer to Purchase. The
Tender Offer is not conditioned upon a minimum amount of Notes
being tendered.
For Notes that have been validly tendered at or prior to the
Expiration Date and that are accepted for purchase pursuant to the
Tender Offer, settlement will occur within three business days
following the Expiration Date, assuming the conditions to the
Tender Offer have been either satisfied or waived by the Company
(including a financing condition) at or prior to the Expiration
Date as further described in the Offer to Purchase. Accrued and
unpaid interest on the Notes, if any, up to, but not including, the
settlement date, will also be paid in cash on all Notes purchased
in the Tender Offer.
The complete terms and conditions of the Tender Offer are set
forth in the Offer to Purchase and related Letter of Transmittal
that are being sent to holders of the Notes. Copies of the Offer to
Purchase and Letter of Transmittal may be obtained from the
Information Agent for the Tender Offer, Global Bondholder Services
Corporation, at (866) 470-4200 (US toll-free) or (212) 430-3774
(collect).
Odeon Capital Group LLC is acting as the Dealer Manager for the
Tender Offer. Questions regarding the Tender Offer may be directed
to Odeon Capital Group LLC at (212) 257-6164 (collect).
Forward-Looking Statements
This press release includes certain "forward-looking
statements," as that term is defined in the Private Securities
Litigation Reform Act of 1995. These forward-looking statements are
based on management's beliefs as well as on a number of assumptions
concerning future events made using information currently available
to management. Readers are cautioned not to put undue reliance on
such forward-looking statements, which are not a guarantee of
performance and are subject to a number of uncertainties and other
factors, many of which are outside the Company’s control. Such
factors include, without limitation, Federal and Alaska Universal
Service Fund changes, the Company’s ability to meet the terms and
conditions of its new credit facility, draw down funds under the
facility and continue to meet its requirements, the Company’s
ability to meet the conditions of and complete the Tender Offer,
adverse economic conditions, the effects of competition in the
Company’s markets, its relatively small size compared with its
competitors, its ability to compete, manage, integrate, market,
maintain, and attract sufficient customers for its products and
services, adverse changes in labor matters, including workforce
levels, the Company’s ability to service its debt (including
pursuant to refinanced credit arrangements) and refinance as
required, labor negotiations, including renegotiating the
collective bargaining agreement, employee benefit costs, the
Company’s ability to control other operating costs, disruption of
suppliers’ provisioning of critical products or services, the
impact of natural or man-made disasters, changes in the Company’s
relationships with large customers, unforeseen changes in public
policies, regulatory changes, changes in technology and standards,
its internal control over financial reporting, and changes in
accounting standards or policies, which could affect reported
financial results. For further information regarding risks and
uncertainties associated with the Company’s business, please refer
to its SEC filings, including, but not limited to, the sections
entitled "Risk Factors" and "Management's Discussion and Analysis
of Financial Condition and Results of Operations" in its most
recent annual report on Form 10-K and any subsequent quarterly
reports on Form 10-Q. Copies of the Company's SEC filings may be
obtained by contacting its investor relations department at (907)
564-7556 or by visiting its investor relations website at
www.alsk.com or at the SEC’s website, www.sec.gov.
Important Information Regarding the Tender Offer
This press release is for informational purposes only and is
neither an offer to buy nor the solicitation of an offer to sell
any and all of the Company’s outstanding 6.25% Convertible Notes
due 2018. The Tender Offer will be made solely by the Offer to
Purchase, the Letter of Transmittal and related materials, as they
may be amended or supplemented. Holders should read the Company’s
commencement Tender Offer statement on Schedule TO filed with the
SEC in connection with the Tender Offer, which will include as
exhibits the Offer to Purchase, the Letter of Transmittal and
related materials, as well as any amendments or supplements to the
Schedule TO when they become available, because they will contain
important information. Each of these documents will be filed with
the SEC, and, when available, holders may obtain them for free from
the SEC at its website (www.sec.gov) or from the Company’s
information agent in connection with the Tender Offer.
About Alaska Communications
Alaska Communications (NASDAQ: ALSK) is the leading provider of
advanced broadband and managed IT services for businesses and
consumers in Alaska. The company operates a highly reliable,
advanced statewide data network with the latest technology and the
most diverse undersea fiber optic system connecting Alaska to the
contiguous U.S. For more information, visit
www.alaskacommunications.com or www.alsk.com.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170317005134/en/
Alaska CommunicationsMedia Contact:Heather Cavanaugh,
907-564-7722orInvestor Contact:Tiffany Smith,
907-564-7556investors@acsalaska.com
Alaska Communications Sy... (NASDAQ:ALSK)
Historical Stock Chart
From Apr 2024 to May 2024
Alaska Communications Sy... (NASDAQ:ALSK)
Historical Stock Chart
From May 2023 to May 2024