Frontier Communications Corp. has entered into a definitive agreement to sell its operations and all associated assets in Washington, Oregon, Idaho and Montana for $1.352 billion in cash, subject to certain closing adjustments.
The assets are being acquired by WaveDivision Capital LLC (WDC) in partnership with Searchlight Capital Partners LLC. WDC is a private investment firm focused on the broadband industry based in Kirkland, Washington. Searchlight is a global private investment firm with offices in New York City, London and Toronto.
Frontier’s operations in the four states serve more than 350,000 residential and commercial customers as of March 31, and account for $619 million of revenue, $46 million of net income and $272 million of adjusted earnings before interest, tax, depreciation and amortization for the 12 months ending March 31.
“The sale of these properties reduces Frontier’s debt and strengthens liquidity,” Frontier President and CEO Dan McCarthy said. “We will be working very closely with the new owners to ensure a smooth, successful transition for our customers and the communities we serve.”
The Norwalk company had $17.4 billion in outstanding debt as of Dec. 31, 2018.
WDC and Searchlight have formed a new company to operate the business and honor existing customer commitments and contracts after the transaction closes.
The deal is subject to regulatory approvals by the Federal Communications Commission, the U.S. Department of Justice, the Committee on Foreign Investment in the United States, applicable state regulatory agencies, and certain local video franchise authorities.
Closing is anticipated to take place within one year.