US telco Windstream has completed its US$818m acquisition of regional fibre provider Q-Comm.
As part of the deal, Windstream will take over Q-Comm’s subsidiaries, the fibre services provider Kentucky Data Link (KDL) and Norlight, a local exchange…
US telco Windstream has completed its US$818m acquisition of regional fibre provider Q-Comm.
As part of the deal, Windstream will take over Q-Comm’s subsidiaries, the fibre services provider Kentucky Data Link (KDL) and Norlight, a local exchange services company.
To finance the transaction, Windstream issued around 20.6 million common shares valued at US$273m. Windstream also paid US$279m in cash, and repaid approximately US$266m of Q-Comm’s outstanding debt.
Windstream said in its statement that it financed the deal partly through its bond offering in October. This involved a private placement of US$500m in senior notes. The joint bookrunners of that deal were BoA Merrill Lynch, Barclays, Citigroup, JP Morgan, RBS, and Wells Fargo.
This follows the completion of Windstream’s acquisition of Hosted Solutions, the regional data centre and hosting provider, for US$310m.
Windstream said that it completed this acquisition through revolved credit borrowings, as well as its own cash.
Windstream has been acquiring smaller US telcos in an attempt to expand its fibre footprint. In June, it announced the completion of its US$1.2bn acquisition of Iowa Telecom.
