Iowa Telecommunications Services, Inc. (NYSE: IWA), announced
today that its Board of Directors has approved an agreement for
Windstream Corporation (NYSE: WIN) to acquire the Newton,
Iowa-based telecommunications company in a transaction valued at
approximately $1.1 billion.
Iowa Telecom provides communications services to residential and
business customers in approximately 460 Iowa and Minnesota
communities. The company has approximately 800 employees and serves
about 256,000 access lines, about 95,000 high-speed Internet
customers and about 26,000 digital TV customers.
“For the past 10 years, Iowa Telecom has been committed to
providing advanced communications services to our customers,”
stated Alan L. Wells, Iowa Telecom Chairman and Chief Executive
Officer. “Our dedicated employees have helped create a solid
reputation with our customers and within the communities we serve.
As the telecommunications industry changes, it has become clear
that we need to increase the size and scale of our operations in
order to continue to offer our customers the services they need.
This has been a difficult decision, but we firmly believe that the
combination with Windstream is in the best interest of our company,
our customers and our shareholders.”
Iowa Telecom shareholders will receive 0.804 shares of
Windstream stock and $7.90 in cash per each Iowa Telecom share
under terms of the agreement approved by the boards of directors of
both companies. Windstream expects to issue approximately 26.5
million shares of stock valued at $269 million, based on the
company’s closing stock price on Nov. 23, 2009, and pay
approximately $261 million in cash as part of the transaction.
Windstream also will repay estimated net debt of approximately $598
million.
“Iowa Telecom’s commitment to meeting the communications needs
of its customers, and its focus on customer service, has resulted
in solid operating and financial results. These are well-run,
profitable properties that offer a unique opportunity to expand our
operations into Iowa and Minnesota,” said Jeff Gardner, president
and CEO of Windstream.
Little Rock, Ark.-based Windstream provides voice, broadband and
entertainment services to customers in 16 states. Similar to Iowa
Telecom, Windstream has a proud heritage of being very involved in
their local communities. Windstream will maintain an operating
presence in the headquarters building in Newton and plans to expand
the existing Newton call center.
“Windstream has an impressive track record of serving customers
in communities similar to the ones we serve. Windstream is a leader
in our industry, and has a reputation for deploying advanced
services,” continued Wells. “We’re pleased that we’ve found a
company to partner with that is as committed to customer service as
we have been.”
The transaction is expected to close in mid-2010, subject to
certain conditions, including necessary approvals from federal and
state regulators and Iowa Telecom shareholders.
About Iowa Telecom
Iowa Telecommunications Services, Inc. (d/b/a Iowa Telecom) is a
telecommunications service provider that offers local telephone,
long distance, Internet, broadband and network access services to
business and residential customers. Today, the Company and its
subsidiaries serve over 450 Iowa communities, 10 Minnesota
communities and employ approximately 800 people. The Company’s
headquarters are in Newton, Iowa. The Company trades on the New
York Stock Exchange under the symbol IWA. For further information
regarding Iowa Telecom, please go to www.iowatelecom.com and select
“Investor Relations.” The Iowa Telecom logo is a registered
trademark of Iowa Telecommunications Services, Inc. in the United
States.
About Windstream
Windstream Corporation is an S&P 500 company that provides
phone, high-speed Internet and high-definition digital TV services
to customers in 16 states. The company also offers a wide range of
IP-based voice and data services and advanced phone systems and
equipment to businesses and government agencies. The company has
approximately 3 million access lines and about $3.1 billion in
annual revenues. Windstream is ranked 4th in the 2009 BusinessWeek
50 ranking of the best performing U.S. companies. For more
information about Windstream, visit www.windstream.com.
Cautionary Statement Regarding Forward-Looking
Statements
This press release contains forward-looking statements within
the meaning of the “safe harbor” provisions of the Private
Securities Litigation Reform Act of 1995. These statements are
based on management’s current expectations and beliefs and are
subject to a number of factors and uncertainties that could cause
actual results to differ materially from those described in the
forward-looking statements. The forward-looking statements
contained in this document include statements concerning the
proposed transaction. These statements are not guarantees of future
performance, involve certain risks, uncertainties and assumptions
that are difficult to predict, and are based upon assumptions as to
future events that may not prove accurate. Therefore, actual
outcomes and results may differ materially from what is expressed
herein. For example, if Iowa Telecom does not receive the required
shareholder approval or fails to satisfy other conditions to
closing, the transaction may not be consummated. The following
factors, among others, could cause actual results to differ
materially from those described in the forward-looking statements:
risks associated with uncertainty as to whether the transaction
will be completed, costs and potential litigation associated with
the transaction, the failure to obtain approval of Iowa Telecom’s
shareholders, the failure of either party to meet the closing
conditions set forth in the merger agreement, the extent and timing
of regulatory approvals, changes in the extensive governmental
legislation and regulations governing telecommunications providers
and the provision of telecommunications services, high costs of
regulatory compliance, the competitive impact of legislation and
regulatory changes in the telecommunications industry, and the
other risk factors discussed from time to time by Iowa Telecom in
its reports filed with the SEC. We urge you to carefully consider
the risks which are described in Iowa Telecom’s Annual Report on
Form 10-K for the year ended December 31, 2008 and in Iowa
Telecom’s other SEC filings. Iowa Telecom is under no obligation to
(and expressly disclaims any such obligation to) update or alter
its forward-looking statements whether as a result of new
information, future events, or otherwise.
Additional Information
In connection with the proposed transaction, Windstream will
file a registration statement on Form S-4 with the SEC, which will
include Iowa Telecom’s proxy statement and also constitute a
prospectus with respect to the Windstream securities. At the
appropriate time, Iowa Telecom will mail the proxy
statement/prospectus to its shareholders. INVESTORS ARE URGED TO
READ THE REGISTRATION STATEMENT AND PROXY STATEMENT/PROSPECTUS
(INCLUDING ALL AMENDMENTS AND SUPPLEMENTS) BECAUSE THEY WILL
CONTAIN IMPORTANT INFORMATION. Investors may obtain free copies of
the registration statement and proxy statement/prospectus when they
become available, as well as other filings containing information
about Windstream and Iowa Telecom, without charge, at the SEC’s
Internet web site (www.sec.gov). These documents may also be
obtained for free from Iowa Telecom’s Investor Relations web site
(www.iowatelecom.com) or by directing a request to Iowa Telecom at
403 W. Fourth Street North, Newton, Iowa 50208 or by calling (641)
787-2000. Copies of Windstream’s filings may be obtained for free
from Windstream’s Investor Relations Web Site (www.windstream.com)
or by directing a request to Windstream at Windstream Investor
Relations, 4001 Rodney Parham Road, Little Rock, Arkansas 72212 or
by calling (866) 320-7922.
Iowa Telecom, Windstream and their respective officers and
directors may be deemed, under SEC rules, to be participants in the
solicitation of proxies from Iowa Telecom’s shareholders with
respect to the proposed transaction. Information regarding the
officers and directors of Iowa Telecom is included in its
definitive proxy statement for its 2009 annual meeting filed with
the SEC on April 29, 2009. Information regarding the officers and
directors of Windstream is included in its Form 10-K for 2008 filed
on February 19, 2009 and in its definitive proxy statement for its
2009 annual meeting filed with the SEC on March 23, 2009. More
detailed information regarding the identity of potential
participants in the solicitation, and their direct or indirect
interests, by securities, holdings or otherwise, which interests
may be different from those of Iowa Telecom’s shareholders
generally, will be set forth in the proxy statement and other
materials to be filed with SEC in connection with the proposed
transaction.
Iowa Telecom (NYSE:IWA)
Gráfico Histórico do Ativo
De Mai 2024 até Jun 2024
Iowa Telecom (NYSE:IWA)
Gráfico Histórico do Ativo
De Jun 2023 até Jun 2024