Consolidated Closes on First Stage of $350M Investment

Positioned for long-term growth, Consolidated Communications announced big news for the company and a serious FTTH win for the U.S. The top 10 U.S. fiber provider will be upgrading more than 1 million fiber passings, which will primarily benefit consumers and SMBs.

Consolidated just closed on the initial $350 million from Searchlight Capital Partners’ total investment commitment of $425 million (a deal that was announced last month). Combined with its debt refinancing, this investment allows Consolidated to immediately accelerate its fiber growth plans. Consolidated considers this investment to be a transformative event for the company; it allows the team to significantly boost speeds, expand 1Gbps coverage and strategically extend its fiber network.

KEY STAGES & DEVELOPMENTS

Stage 1: Searchlight invested $350 million in the Company in exchange for 8 percent of the Company’s common stock.
Stage 2: Searchlight will invest an additional $75 million.
The Company also announced its board of directors has appointed Dave Fuller to the board, effective as of the closing of the Investment today and Andrew Frey as a non-voting observer.
Consolidated expects to receive FCC approval in mid-2021.

“We’re very pleased with the strong support from investors and the terms of our refinancing. This successful refinancing, combined with the strategic investment, significantly strengthens the balance sheet and aligns with our deleveraging targets. Our new capital structure improves our balance sheet, extends maturities and significantly improves liquidity, all of which provides us with much greater flexibility to support our fiber expansion and growth plan.” – Steve Childers, chief financial officer at Consolidated Communications

“We are confident our new structure and enhanced strategy, combined with a resilient and stable core business, provide us everything we need to complete the transformation of our Company. We are pleased to begin our strategic partnership with Searchlight and bring the most competitive broadband services to the people and communities we serve. We have the right team, attractive markets, a robust near-net fiber network, and now the capital structure to allow us to return to revenue growth. Our next era of fiber expansion, which is already underway, will bring significant benefits to consumer, commercial and carrier customers.” Bob Udell, president and chief executive officer at Consolidated Communications

To read the full announcement, please click HERE.