Consolidated Communications raises cash to finish SureWest acquisition
Consolidated Communications (Nasdaq: CNSL) plans to generate new funds to wrap up its pending acquisition of fellow independent ILEC SureWest (Nasdaq: SURW).
The Mattoon, Ill.-based service provider, as reported in the Sacramento Business Journal, plans to sell $350 million in senior notes that will mature in 2020 to partially fund the deal.
SureWest agreed to be purchased by Consolidated for $340.9 million in cash and stock, in February. When the purchase is complete, the combined company will have operations that stretch across six states.
Although both service providers were raised in separate markets with little overlap as traditional independent telcos, their overall strategy in recent years has been to transform themelves into broadband and IP-centric services providers, offering consumers and businesses an array of IPTV and Ethernet services.