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Consolidated Communications closes on $1.3B FairPoint buyout

Published 07/03/2017, 01:07 PM
© Reuters.  Consolidated Communications closes on $1.3B FairPoint buyout
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  • Consolidated Communications (CNSL +2.2%) has closed as expected on its now-$1.3B acquisition of FairPoint Communications (FRP +1.9%).
  • The deal stretches Consolidated's fiber network to more than 36,000 route miles in 24 states, good enough to become the ninth largest fiber provider.
  • Consolidated says it will be meaningfully accretive to cash flow per share this year, with expected annual run-rate cost savings of $55M, and $300M in net operating losses.
  • FairPoint stockholders will get 0.73 shares of Consolidated stock for each FairPoint share they hold; no fractional shares will be issued.
  • The deal had gotten approval from 17 states in which Consolidated operates, as well as other milestones through last winter and the spring.
  • It's holding the dividend at $1.55.
  • After hours: CNSL -1.4%.
  • Now read: Cincinnati Bell: Hidden Long-Term Value In Its Fioptics Network


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