Consolidated Communications raises cash to complete 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.

For more:
- The Sacramento Business Journal has this article

Related articles:
Consolidated Communications broadband and backhaul initiatives help minimize Q1 voice service declines
SureWest's broadband growth drives Q1 2012 revenue up 3.6 percent
Consolidated Communications' Q4 gets boost from business, broadband, wholesale revenue

Suggested Articles

Frontier Communications is looking to rebound from a disappointing second quarter last month by offering a new managed cloud IT service.

Tyson, Virginia-based GiGstreem raised $10 million in a Series B funding round that was led by RET Ventures with participation from LNC Partners.

Comcast sent its Senior VP of Next Generation Access Networks Elad Nafshi to the ONF conference today to announce its big step on virtualization of the cable…