By Dawn Manchester
On May 31, Frontier Communications Corp. entered an agreement to sell its operations and all associated assets in Montana, Washington, Oregon and Idaho to Wave Division Capital LLC (WDC) in partnership with Searchlight Capital Partnerships LLC.
The companies agreed on a price of $1.352 billion.
Serving all of Libby and some surrounding areas, Frontier represented more than 350,000 residential and commercial customers as of May 31. Officially, Frontier shows $619 million in revenue, $46 million in net income, and $272 million in adjusted earnings before interest, tax, depreciation and amortization for the past 12 months.
The purchase will need to undergo regulatory approval and other customary closing conditions prior to being complete, and is expected to occur later this year.
Approvals will need to be made by the Federal Communications Commission, the U.S. Department of Justice, the Committee of Foreign Investments in the United States (CFIUS), other applicable regulatory agencies, and certain local video franchise authorities.
Frontier will continue to serve existing costumers as well as new ones until the transaction is closed and then WDC will take over providing services for costumers. WDC and Searchlight have formed an all new company to operate the internet business and to honor already existing customer commitments and contracts after the finalizing the transaction.
Frontier will receive $1.35 billion at closing to help pay off debt, and it is anticipated that neither Frontier’s 350,000 former phone, internet and TV customers nor their regional employees will see significantly changes, at least not immediately.
WDC, in a press release, stated that they intend to extend fiber to more homes and businesses.