Consolidated Communications Closes on Second Stage of Searchlight Capital Partners’ Investment in Company of $75 Million

Consolidated Communications Holdings, Inc. announced that it has secured FCC approval and closed on the second stage of the previously disclosed investment transaction with an affiliate of Searchlight Capital Partners, L.P. in an amount of $75 million, as part of the aggregate $425 million investment from affiliates of Searchlight in the Company.

“We’re pleased to have closed on the second step of the Searchlight investment and have a fully funded growth plan to accelerate and enable fiber-to-the-home broadband services to more than 1.6 million passings by 2025 across the communities we serve,” said Bob Udell, president and chief executive officer of Consolidated Communications. “With Searchlight as our strategic partner, we’re able to capitalize on our growth opportunities and transform Consolidated Communications into a leading fiber broadband provider.”

Recommended AI News: The Nobility Project Leads the Way When it Comes to BUSD Reflections!

“We are very pleased with Consolidated’s impressive operational and fiber build progress thus far in 2021,” said Andrew Frey, partner at Searchlight Capital. “The transformation of Consolidated into a leading U.S. fiber operator is well underway. We are excited to continue to support the Company as it accelerates its investment in fiber, and drives toward revenue growth.”

The Company has embarked on a five-year growth initiative, underpinned by significant investments in fiber infrastructure. Once complete, more than 1.6 million consumers and small-businesses will have access to multi-gigabit, fiber broadband services. This investment will both future-proof the Company’s network and benefit hundreds of communities. Consolidated will also continue investing in commercial and carrier expansion by leveraging these fiber builds to edge out its network. Together, these investments serve as the foundation of a multi-year investment initiative that will enable Consolidated to deliver superior services and an exceptional customer experience across all three customer channels while returning to revenue growth.

Recommended AI News: Fourth Wave Energy Inc. Signs Merger Agreement to Acquire EdgeMode

Upon closing the second stage of its investment, Searchlight has invested a total of $425 million, which was structured in two stages with the initial investment of $350 million occurring in October 2020 in conjunction with the Company’s global refinancing. Upon receipt of FCC and Hart Scott Rodino approvals and the satisfaction of certain other customary closing conditions, Searchlight invested an additional $75 million in Consolidated. Effective upon the second closing, Searchlight received Series A perpetual preferred stock of Consolidated upon conversion of an unsecured subordinated note with an original principal amount of approximately $395.5 million. In addition, Searchlight received an additional 15.1 million shares of the Company’s common stock, and now holds approximately 35 percent of the Company’s approximate 114 million total shares of common stock outstanding.

As part of the Investment, Searchlight will have two Board of Director seats and has selected David Fuller and Andrew Frey to serve on the Consolidated Board of Directors, and Steve Weed to serve as a non-voting board observer.

Recommended AI News: NavVis Adds Fresh Funding to Fulfill Its Mission to Digitize Commercial Buildings and Assets