US-based ISP Consolidated Communications has completed its acquisition of SureWest Communications, also an ISP, for US$324m exclusive of debt.
In May Consolidated issued a US$300m bond to help finance the purchase.
The merger agreement, inked in…
US-based ISP Consolidated Communications has completed its acquisition of SureWest Communications, also an ISP, for US$324m exclusive of debt.
In May Consolidated issued a US$300m bond to help finance the purchase.
The merger agreement, inked in February, dictated that 50% of the SureWest shares will be exchanged for US$23 cash per share, and 50% for an equivalent value of Consolidated stock.
Shares in Consolidated closed at an average trading price of US$14.44 for the 20-day period before the completion of the deal. This means each of the remaining SureWest shares converted into the right to receive 1.40465 shares of common stock in Consolidated, or an approximate total of 10,417,450 shares.
“This transaction with SureWest brings together our consistent cash flows with SureWest’s growth to create a financially strong company with a robust balance sheet and attractive dividend payout ratio. The combined company provides a diverse set of revenues and cash flows across multiple markets resulting in a stronger, more competitive company,” said Consolidated CEO Bob Currey.
Morgan Stanley and Wells Fargo are financial advisers to Consolidated and Schiff Hardin is acting as legal adviser.
SureWest’s financial adviser is UBS and its legal adviser is Orrick, Herrington & Sutcliff.
