Frontier Communications to sell assets and operations in four states for $1.352 billion in cash
Frontier Communications Corp. shares soared 18% Wednesday, after the company said it is selling its operations and associated assets in Washington, Oregon, Idaho, and Montana to WaveDivision Capital LLC and Searchlight Capital Partners LLC for $1.352 billion in cash. The company, a provider of video and high-speed internet services to rural and urban customers in 29 states, serves more than 350,000 residential and commercial customers in those states, which account for $619 million revenue and $46 million in net income for the 12 months to March 31. The deal is expected to close within a year. The sale "reduces Frontier's debt and strengthens liquidity," said Chief Executive Dan McCarthy. WaveDivision and Searchlight have created a new company to operate the business once the deal closes. Shares have fallen 74% in the last 12 months, while the SP 500 has gained about 4%. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
Frontier Communications to sell assets and operations in four states for $1.352 billion in cash
Frontier Communications Corp. shares soared 18% Wednesday, after the company said it is selling its operations and associated assets in Washington, Oregon, Idaho, and Montana to WaveDivision Capital LLC and Searchlight Capital Partners LLC for $1.352 billion in cash. The company, a provider of video and high-speed internet services to rural and urban customers in 29 states, serves more than 350,000 residential and commercial customers in those states, which account for $619 million revenue and $46 million in net income for the 12 months to March 31. The deal is expected to close within a year. The sale "reduces Frontier's debt and strengthens liquidity," said Chief Executive Dan McCarthy. WaveDivision and Searchlight have created a new company to operate the business once the deal closes. Shares have fallen 74% in the last 12 months, while the SP 500 has gained about 4%. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.