Alaska-based telco General Communication (GCI) has acquired Alaska Communications System’s (ACS) 109,000 wireless subscribers.
The company has also agreed to buy ACS’ 33% interest in Alaska Wireless Network (AWN), a joint venture between GCI and…
Alaska-based telco General Communication (GCI) has acquired Alaska Communications System’s (ACS) 109,000 wireless subscribers.
The company has also agreed to buy ACS’ 33% interest in Alaska Wireless Network (AWN), a joint venture between GCI and ACS. The total deal value is US$300m.
AWN was set up in June 2012 by merging both telcos’ networks into a single entity in an effort to better compete against national carriers such as Verizon. The JV is two-thirds owned by GCI and one–third by ACS.
In a joint statement, the companies said they have reached a transition plan to “ensure a seamless continuation of service” for ACS customers.
The deal is due to close in Q1 2015, subject to certain conditions.
Raises US$75m from PE firm
In a separate statement, GCI also announced that private equity firm Searchlight Capital Partners has invested US$75m into the telco via an unsecured eight-year bond issue carrying a 7.5% coupon.
Attached to the notes, which are callable after four years, are three million shares in stock appreciation rights (SARs), priced at US$13 each. These SARs are also callable after four years.
As part of the agreement, Searchlight co-founder Eric Zinterhofer will become a GCI board member.
Zinterhofer has invested in a number of cablecos including Charter Communications, Liberty Cablevision Puerto Rico, Unitymedia, Cablecom and Primacom, as well as fibre, wireless and satellite companies.
GCI claims to be Alaska’s largest telecoms provider, offering nationwide wireless, voice, data, and video services.
