FairPoint Communications, Inc. (Nasdaq:FRP), a leading
communications provider, announced today that has been awarded
$36.7 million in New NY Broadband Program Phase 2 grants.
These grants, combined with an estimated $9.3 million in Company
investments, will support the extension and upgrading of high-speed
broadband service to 10,321 locations in the Company’s New York
service territory.
Over the next two-years, FairPoint plans to upgrade
existing equipment and extend its fiber reach to provide faster
broadband speeds to underserved areas with a priority of reaching
unserved locations, libraries and educational opportunity centers
with enhanced service.
“We are pleased to receive this grant from the New
NY Broadband Program, and we are thrilled with the confidence
Governor Cuomo and the members of the New York State Broadband
Program Office have shown in FairPoint with these awards,” said
Paul H. Sunu, Chief Executive Officer of FairPoint. “We share
the Governor’s commitment to expand and enhance broadband services,
and we are excited about how this public/private partnership will
positively impact the everyday lives of the residents of the
state.”
“We are excited to have this opportunity and eager
to complete these projects after the closing of our pending
acquisition of FairPoint,” commented Bob Udell, President and Chief
Executive Officer of Consolidated Communications. “We believe this
effort aligns precisely with our strategic priority to enhance and
extend fiber networks and to bring high-speed broadband access to
communities we serve.”
FairPoint looks forward to providing updates as the
Company makes progress on the accepted projects.
About the New NY Broadband
ProgramRecognizing the importance of broadband
infrastructure and building on prior State investments in broadband
deployment, Governor Andrew M. Cuomo in 2015, with legislative
support, established the $500 million New NY Broadband Program. The
Program provides New York State grant funding to support projects
that deliver high-speed Internet access to Unserved and Underserved
areas of the State, with priority to Unserved areas, Libraries, and
Educational Opportunity Centers. The Program is the largest
and most ambitious state investment in broadband in the nation,
with a goal of achieving statewide broadband access in New York by
the end of 2018.
About FairPoint Communications,
Inc.FairPoint Communications, Inc. (Nasdaq:FRP) provides
advanced data, voice and video technologies to single and
multi-site businesses, public and private institutions, consumers,
wireless companies and wholesale re-sellers in 17 states.
Leveraging an owned, fiber-based Ethernet network — with more than
22,000 route miles of fiber, including approximately 18,000 route
miles of fiber in northern New England — FairPoint has the network
coverage, scalable bandwidth and transport capacity to support
enhanced applications, including the next generation of mobile and
cloud-based communications, such as small cell wireless backhaul
technology, voice over IP, data center colocation services, managed
services and disaster recovery. For more information, visit
www.FairPoint.com.
About Consolidated
CommunicationsConsolidated Communications (Nasdaq:CNSL)
provides business and broadband communications services across its
11-state service area to carrier, commercial and consumer
customers. For more than a century, the Company has consistently
provided innovative, reliable, high-quality products and services.
The Company offers a wide range of communications solutions
including: High-Speed Internet, Data, Digital TV, Phone, managed
and cloud services and wireless backhaul over an extensive fiber
optic network.
Safe Harbor
The Securities and Exchange Commission (the “SEC”)
encourages companies to disclose forward-looking information so
that investors can better understand a company’s future prospects
and make informed investment decisions. Certain statements in
this communication are forward-looking statements and are made
pursuant to the safe harbor provisions of the Securities Litigation
Reform Act of 1995. These forward-looking statements reflect,
among other things, current expectations, plans, strategies, and
anticipated financial results of Consolidated Communications
Holdings, Inc. (“Consolidated”) and FairPoint Communications, Inc.
(“FairPoint”), both separately and as a combined entity.
There are a number of risks, uncertainties, and conditions that may
cause the actual results of Consolidated and FairPoint, both
separately and as a combined entity, to differ materially from
those expressed or implied by these forward-looking
statements. These risks and uncertainties include the timing
and ability to complete the proposed acquisition of FairPoint by
Consolidated, the expected benefits of the integration of the two
companies and successful integration of FairPoint’s operations with
those of Consolidated and realization of the synergies from the
integration, as well as a number of factors related to the
respective businesses of Consolidated and FairPoint, including
economic and financial market conditions generally and economic
conditions in Consolidated’s and FairPoint’s service areas; various
risks to stockholders of not receiving dividends and risks to
Consolidated’s ability to pursue growth opportunities if
Consolidated continues to pay dividends according to the current
dividend policy; various risks to the price and volatility of
Consolidated’s common stock; changes in the valuation of pension
plan assets; the substantial amount of debt and Consolidated’s
ability to repay or refinance it or incur additional debt in the
future; Consolidated’s need for a significant amount of cash to
service and repay the debt and to pay dividends on its common
stock; restrictions contained in Consolidated’s debt agreements
that limit the discretion of management in operating the business;
legal or regulatory proceedings or other matters that impact the
timing or ability to complete the acquisition as contemplated,
regulatory changes, including changes to subsidies, rapid
development and introduction of new technologies and intense
competition in the telecommunications industry; risks associated
with Consolidated’s possible pursuit of acquisitions; system
failures; losses of large customers or government contracts; risks
associated with the rights-of-way for the network; disruptions in
the relationship with third party vendors; losses of key management
personnel and the inability to attract and retain highly qualified
management and personnel in the future; changes in the extensive
governmental legislation and regulations governing
telecommunications providers and the provision of
telecommunications services; telecommunications carriers disputing
and/or avoiding their obligations to pay network access charges for
use of Consolidated’s and FairPoint’s network; high costs of
regulatory compliance; the competitive impact of legislation and
regulatory changes in the telecommunications industry; liability
and compliance costs regarding environmental regulations; the
possibility of disruption from the integration of the two companies
making it more difficult to maintain business and operational
relationships; the possibility that the acquisition is not
consummated, including, but not limited to, due to the failure to
satisfy the closing conditions; the possibility that the merger or
the acquisition may be more expensive to complete than anticipated,
including as a result of unexpected factors or events; and
diversion of management’s attention from ongoing business
operations and opportunities. A detailed discussion of risks
and uncertainties that could cause actual results and events to
differ materially from such forward-looking statements are
discussed in more detail in the joint proxy statement of
Consolidated and FairPoint, which also constitutes a prospectus of
Consolidated, filed by Consolidated with the SEC pursuant to Rule
424(b)(3) on February 24, 2017 (the “Joint Proxy
Statement/Prospectus”) and in Consolidated’s and FairPoint’s
respective filings with the SEC, including the Annual Report on
Form 10-K of Consolidated for the year ended December 31, 2016,
which was filed with the SEC on March 1, 2017, under the heading
“Item 1A-Risk Factors,” and the Annual Report on Form 10-K of
FairPoint for the year ended December 31, 2015, which was filed
with the SEC on March 2, 2016, under the heading “Item 1A-Risk
Factors,” and in subsequent reports on Forms 10-Q and 8-K and other
filings made with the SEC by each of Consolidated and FairPoint.
Many of these circumstances are beyond the ability of Consolidated
and FairPoint to control or predict. Moreover,
forward-looking statements necessarily involve assumptions on the
part of Consolidated and FairPoint. These forward-looking
statements generally are identified by the words “believe,”
“expect,” “anticipate,” “estimate,” “project,” “intend,” “plan,”
“should,” “may,” “will,” “would,” “will be,” “will continue” or
similar expressions. Such forward-looking statements involve
known and unknown risks, uncertainties and other factors that may
cause actual results, performance or achievements of Consolidated
and FairPoint, and their respective subsidiaries, both separately
and as a combined entity to be different from those expressed or
implied in the forward-looking statements. All
forward-looking statements attributable to us or persons acting on
the respective behalf of Consolidated or FairPoint are expressly
qualified in their entirety by the cautionary statements that
appear throughout this communication. Furthermore,
forward-looking statements speak only as of the date they are
made. Except as required under the federal securities laws or
the rules and regulations of the SEC, each of Consolidated and
FairPoint disclaim any intention or obligation to update or revise
publicly any forward-looking statements. You should not place
undue reliance on forward-looking statements.
Important Merger Information and Additional
Information
This communication does not constitute an offer to
sell or the solicitation of an offer to buy any securities or a
solicitation of any vote or approval. In connection with the
proposed transaction, Consolidated and FairPoint have and will file
relevant materials with the SEC. Consolidated and FairPoint
have mailed the Joint Proxy Statement/Prospectus to their
respective stockholders. Investors are urged to read
the Joint Proxy Statement/Prospectus regarding the proposed
transaction because it contains important
information. The Joint Proxy Statement/Prospectus
and other relevant documents that have been or will be filed by
Consolidated and FairPoint with the SEC are or will be available
free of charge at the SEC’s website, www.sec.gov, or by directing a
request when such a filing is made to Consolidated Communications
Holdings, Inc., 121 South 17th Street, Mattoon, IL 61938,
Attention: Investor Relations or to FairPoint Communications, Inc.,
521 East Morehead Street, Suite 500, Charlotte, North Carolina
28202, Attention: Secretary.
Consolidated, FairPoint and certain of their
respective directors, executive officers and other members of
management and employees may be considered participants in the
solicitation of proxies in connection with the proposed
transaction. Information about the directors and executive
officers of Consolidated is set forth in its definitive proxy
statement, which was filed with the SEC on March 28, 2016.
Information about the directors and executive officers of FairPoint
is set forth in its definitive proxy statement, which was filed
with the SEC on March 25, 2016, and in the Joint Proxy
Statement/Prospectus. These documents can be obtained free
of charge from the sources listed above. Investors may obtain
additional information regarding the interests of such participants
by reading the Joint Proxy Statement/Prospectus.
FairPoint Communications Contact:
Paul Taaffe
(704) 227-3623
ptaaffe@fairpoint.com
Consolidated Communications Contact:
Jennifer Spaude
507-386-3765
jennifer.spaude@consolidated.com
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