ENGLEWOOD, Colo.--(BUSINESS WIRE)--
WideOpenWest, Inc. (“WOW!” or the “Company”) (NYSE: WOW)
announced today that it has entered into a definitive agreement to sell
a portion of its fiber network in the Company’s Chicago market to a
subsidiary of Verizon (NYSE: VZ) for $225 million in cash. In addition,
WOW! and Verizon will enter into a new agreement pursuant to which WOW!
will complete the build-out of the network in exchange for approximately
$50 million (which approximates WOW!’s remaining estimate to complete
the network build-out), payable as the remaining network elements are
completed. The final build-out of the network is expected to be
completed during the second half of 2018 and, when completed, will
provide back-haul services to over 500 macro-cell wireless sites and
more than 500 small-cell wireless sites.
The transaction is subject to receipt of various consents and approvals
as well as other customary closing conditions and is expected to close
by early in the first quarter of 2018. WOW!’s financial outlook for the
twelve month period ending December 31, 2017, previously included
Revenues and Adjusted EBITDA attributable to the network totaling
approximately $13.7 million and $13.2 million, respectively. A portion
of the proceeds are expected to be used to pay-down WOW!’s existing debt
balances.
“We’re pleased to have reached an agreement to sell our Chicago fiber
asset to Verizon,” said Steven Cochran, Chief Executive Officer of WOW!.
“This transaction is consistent with WOW!’s stated objective of reaching
an optimal leverage profile and allows us to continue to focus on areas
of growth for residential and commercial services with our internet
centric-outlook and emphasis on expanding our markets through edge-out
builds.”
Morgan Stanley & Co. LLC and Kirkland & Ellis LLP served as exclusive
financial and legal advisors, respectively, to WOW! as part of this
transaction.
About WOW!
WOW! is one of the nation's leading providers of high-speed Internet,
cable TV and phone serving communities in the U.S. WOW!’s operating
philosophy is to deliver an employee and customer experience that lives
up to its name. For more information, please visit www.wowway.com.
Forward-Looking Statements
This press release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended,
including statements regarding the agreements with Verizon, the
likelihood and expected timing of the closing, and any use of proceeds
and expected cost savings therefrom. These statements are not historical
facts but rather are based on the Company’s current expectations
regarding the proposed refinancing, which is subject to various closing
conditions and agreeing to definitive documentation. Words such as
“may,” “will,” “could,” “would,” “should,” “predict,” “potential,”
“expects,” “intends,” “plans,” “believes,” and similar expressions are
used to identify these forward-looking statements. These statements are
only predictions and as such are not guarantees of future performance
and involve risks, uncertainties and assumptions that are difficult to
predict. Actual results may differ materially from those in the
forward-looking statements as a result of a number of factors, including
those described from time to time in the Company’s filings with the
Securities and Exchange Commission. The forward-looking statements
contained in this release speak as of the date of this release, and WOW!
does not undertake any obligation to update any such statements, whether
as a result of new information, future events or otherwise.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170801006735/en/
Source: WideOpenWest Inc.