Consolidated Communications Announces Plan to Accelerate Transformational Fiber Builds by Enabling 1 Gig Speeds to an Additio...
December 07 2020 - 4:05PM
Consolidated Communications (NASDAQ: CNSL) a leading broadband and
business communications provider, today in conjunction with the
Rural Digital Opportunities Fund (RDOF) Auction results, announced
plans to accelerate its fiber builds and enable gigabit-capable
services to an additional 300,000 homes and small businesses in
2021. This plan coupled with Consolidated’s recent announcement and
strategic partnership with Searchlight Capital Partners will future
proof its network and upgrade a total of 1.6 million additional
passings to fiber-gigabit services over a five-year period. The
network investments will be made across seven states including more
than 1 million passings within Northern New England.
The incremental build CapEx will be partially offset by funding
from the RDOF, which replaces the Connect America Fund (CAF) Phase
II Program. Consolidated secured $58.9 million in funding over 10
years across 246 census block groups located in Maine, Vermont, New
Hampshire, Illinois, Texas, Florida and Minnesota. The Company will
pass 200,000 locations as it builds to 27,000 required RDOF
locations over a five-year period.
“Consolidated’s accelerated fiber network expansion will provide
significant benefits to customers, especially rural consumers and
small businesses, who will be equipped to work from home, and fully
participate in online learning and entertainment with significantly
enhanced broadband services,” said Bob Udell, president and chief
executive officer at Consolidated Communications. “The work we did
with CAF II funding and our history of extending our fiber deep
into the markets we serve positions us very well to accelerate our
fiber build at a cost-effective rate per passing,” added Udell. “As
a result of our ongoing asset review and the RDOF auction, we will
build to an additional 150,000 near-net passings in areas without
RDOF funding, but have attractive returns due to the proximity of
our resources and fiber network. We will offer a highly
competitive, symmetrical multi-gigabit service with superior
technology and a best-in-class customer experience.”
Consolidated recently completed a refinancing and
recapitalization of its balance sheet with the Searchlight
investment and reported reduced leverage of 3.5x and a $250 million
untapped revolver with approximately $100 million in cash at the
end of the third quarter.
To learn more about Consolidated Communications gigabit
services, visit www.consolidated.com/fiberlife. About
Consolidated CommunicationsConsolidated Communications
Holdings, Inc. (NASDAQ: CNSL) is a leading broadband and business
communications provider serving consumers, businesses, and wireless
and wireline carriers across rural and metro communities and a
23-state service area. Leveraging an advanced fiber network
spanning 46,300 fiber route miles, Consolidated Communications is a
top-10 fiber provider in the U.S. offering a wide range of
communications solutions, including: high-speed Internet, data,
phone, security, managed services, cloud services and wholesale,
carrier solutions. From our first connection 125 years ago,
Consolidated is dedicated to turning technology into solutions,
connecting people and enriching how they work and live. Visit
www.consolidated.com for more information.
Forward-Looking Statements
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. 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 the Company 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 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.
Contact: Jennifer Spaude, Consolidated
Communications507-386-3765, jennifer.spaude@consolidated.com
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