Windstream (Nasdaq: WIN) is set on expanding its business and wholesale network service base, and to get there it's happy to take out its checkbook to buy strategic assets like Q-Comm.
In order to pay for its $782 million in cash and stock Q-Comm acquisition--one that comes with CLEC Norlight Communications and regional fiber provider Kentucky Data Link (KDL)--Windstream will offer $500 million in senior notes due in 2020.
Depending on market conditions, the service provider expects to complete the private placement offering in October.
Windstream will leverage the funds, in addition to its own cash, to pay for the Q-Comm purchase, which includes transaction fees and expenses and paying Q-Comm's outstanding debt.
Already approved by the boards of both companies, Windstream says it will wrap up the deal in Q4 this year.
For more:
- Fox Business has this article
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Jeff Gardner, CEO and President of Windstream on industry consolidation, the future of broadband and business service growth
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Windstream to buy Kentucky Data Link, Norlight