The FCC has given approval to the US$2.3bn acquisition of PAETEC Holding Corp by ISP and telco Windstream.
PAETEC provides broadband and telephone services, predominantly to business users, through its subsidiaries.
Windstream said that it has now…
The FCC has given approval to the US$2.3bn acquisition of PAETEC Holding Corp by ISP and telco Windstream.
PAETEC provides broadband and telephone services, predominantly to business users, through its subsidiaries.
Windstream said that it has now received all regulatory approvals and that it expects to close the deal on 1 December.
Windstream said in its original statement announcing the deal on 1 August that the deal was valued at approximately US$2.3bn.
PAETEC shareholders will receive 0.46 Windstream shares for each PAETEC share that they hold. As a result, Windstream expects to issue approximately 73m shares valued at US$891m in total to former PAETEC shareholders. PAETEC shareholders are expected to hold 13% of the combined company when the deal completed.
Windstream said it would assume or refinance US$1.4bn of PAETEC’s net debt at the time of closing.
Windstream also announced yesterday that it has completed its private offering of US$500m in 7.5% senior notes maturing in 2022.
It said the net proceeds will be used to redeem approximately US$201.5m of its outstanding 8.625% senior notes due in 2016, with the remaining net proceeds being used to repay amounts that it has borrowed under its revolving credit facility.
Windstream is calling for the redemption of all of the US$201.5m of the 8.625% notes due 2016 on 22 December.
It added that, assuming the closure of the PAETEC deal, it intends to use borrowings under its revolving credit facility to repurchase US$300m of PAETEC’s outstanding 9.5% senior notes due 2015.
