Market Overview

Investors Cheer As Frontier Communications Offloads Operations In 4 States

Investors Cheer As Frontier Communications Offloads Operations In 4 States

Frontier Communications Corporation (NASDAQ: FTR) will sell its operations and all associated assets in Washington, Oregon, Idaho and Montana to WaveDivision Capital, LLC in partnership with Searchlight Capital Partners, LLC for $1.352 billion in cash, the company announced Wednesday. 

The transaction is subject to regulatory approval and is expected to close within one year, the telecom said. 

Why It's Important 

Frontier’s operations in the four states serve more than 350,000 residential and commercial customers and accounted for $619 million in revenue, $46 million in net income and $272 million in adjusted EBITDA for the 12 ending March 31, according to Frontier

“The sale of these properties reduces Frontier’s debt and strengthens liquidity,” CEO Dan McCarthy said in a statement. 

“We are pleased to have a buyer with extensive experience building and operating advanced fiber-based communications assets in these regions. We will be working very closely with the new owners to ensure a smooth, successful transition for our customers and the communities we serve." 

Price Action 

Frontier Communications shares were trading higher by 10.4 percent at $1.92 at the time of publication Wednesday. 

Related Links:

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Posted-In: telecomNews Penny Stocks Asset Sales Markets Best of Benzinga


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