JULY 21, 2010 -- NTELOS Holdings Corp., a provider of wireless and wireline communications services (branded as NTELOS) in Virginia and West Virginia, has entered into a purchase agreement with One Communications Corp. to acquire its FiberNet business for cash consideration of approximately $170 million.
The FiberNet fiber-optic network of approximately 3,500 route miles covers all of West Virginia and extends into surrounding areas in Ohio, Maryland, Pennsylvania, Virginia, and Kentucky.
FiberNet service revenues and adjusted EBITDA for 2009 were approximately $76 million and $25 million, respectively. Capital expenditures for 2009 were approximately $13 million. NTELOS intends to fund the purchase through a combination of a permitted incremental term loan under the existing senior credit facility, availability under the undrawn revolver and cash on hand.
The acquisition is subject to, among other conditions, receiving approval from the FCC and the relevant state public service commissions and anti-trust review under the Hart-Scott-Rodino Act Pending all approvals, the acquisition is expected to close in the fourth quarter of 2010. The purchase agreement is subject to termination if the acquisition is not completed before December 31, 2010.