US-based ISP Consolidated Communications intends to issue US$350m of senior notes due 2020. The proceeds of the offering, which will be made via the company’s Finance Co. subsidiary, will be used to finance the US$340m acquisition of SureWest.
Morgan…
US-based ISP Consolidated Communications intends to issue US$350m of senior notes due 2020. The proceeds of the offering, which will be made via the company’s Finance Co. subsidiary, will be used to finance the US$340m acquisition of SureWest.
Morgan Stanley is the sole underwriter for the issue, a spokesperson for the company said.
The acquisition of SureWest was announced in early February. Illinois-based Consolidated and Sacramento-based SureWest both provide telephone, internet and digital TV services over their fibre networks.
Consolidated serves customers in Illinois, Pennsylvania and Texas, while SureWest serves California, Kansas and Missouri. According to the companies, the combined turnover of the merged entities is US$620m for the year up to 30 September 2011. They expect to generate operational synergies of US$25m per year and capex synergies of US$5-10m per year.
