Consolidated Communications Closes on Sale of its Ohio Assets

Rhea-AI Summary

Consolidated Communications (NASDAQ: CNSL) has successfully completed the sale of its Ohio assets to Hanson Communications. This divestiture is part of the company's strategic review to focus on fiber expansion in core regions. The Ohio operations generated approximately $9 million in revenue during fiscal year 2021, encompassing about 4,000 access lines and 3,900 Internet connections. More details regarding this transaction will be disclosed during the upcoming fourth quarter earnings call on March 3.

Positive

• The sale of Ohio assets allows Consolidated Communications to concentrate on fiber expansion.
• Ohio operations generated approximately $9 million in revenue in fiscal year 2021.

Negative

• None.

MATTOON, Ill.--(BUSINESS WIRE)-- Consolidated Communications Holdings, Inc. (NASDAQ: CNSL) (“Company”) announced today it has completed the sale of its Ohio assets to Hanson Communications of Ohio, LLC, an affiliate of Hanson Communications, Inc. The sale aligns with the Company’s strategic review of assets and focus on its fiber expansion across core regions.

Consolidated’s Ohio operations contributed approximately $9 million of revenue in fiscal year 2021 and includes approximately 4,000 access lines and 3,900 Internet connections. The Company will provide more information on this divestiture during its fourth quarter earnings call scheduled for March 3.

Lazard Middle Market, LLC served as the financial advisor to Consolidated Communications on the transaction.

About Consolidated Communications

Consolidated Communications Holdings, Inc. (NASDAQ: CNSL) is dedicated to moving people, businesses and communities forward by delivering the latest reliable communications solutions. Consumers, businesses and wireless and wireline carriers depend on Consolidated for a wide range of high-speed internet, data, phone, security, cloud and wholesale carrier solutions. With a network spanning more than 50,000 fiber route miles, Consolidated is a top 10 U.S. fiber provider, turning technology into solutions that are backed by exceptional customer support. Learn more at consolidated.com. Connect with us on social media.

About Hanson Communications

Hanson Communications, Inc. is a family-owned telecommunications business, founded in 1951. Hanson has over 10,000 access lines, 15,000 Internet connections and 5,500 TV connections.

Safe Harbor

Certain statements in this press release are forward-looking statements and are made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. These forward-looking statements reflect, among other things, our current expectations, plans, strategies, and anticipated financial results. There are a number of risks, uncertainties, and conditions that may cause our actual results to differ materially from those expressed or implied by these forward-looking statements. These risks and uncertainties include a number of factors related to our business, including the uncertainties relating to the impact of the novel coronavirus (COVID-19) pandemic on the Company’s business, results of operations, cash flows, stock price and employees; the possibility that any of the anticipated benefits of the strategic investment from Searchlight or our refinancing of outstanding debt, including our senior secured credit facilities, will not be realized; the outcome of any legal proceedings that may be instituted against the Company or its directors; the ability to obtain regulatory approvals and meet other closing conditions to the investment on a timely basis or at all, including the risk that regulatory approvals required for the investment are not obtained subject to conditions that are not anticipated or that could adversely affect the Company or the expected benefits of the investment; the anticipated use of proceeds of the strategic investment; economic and financial market conditions generally and economic conditions in our service areas; various risks to the price and volatility of our common stock; changes in the valuation of pension plan assets; the substantial amount of debt and our ability to repay or refinance it or incur additional debt in the future; our need for a significant amount of cash to service and repay the debt restrictions contained in our debt agreements that limit the discretion of management in operating the business; regulatory changes, including changes to subsidies, rapid development and introduction of new technologies and intense competition in the telecommunications industry; risks associated with our possible pursuit of acquisitions; system failures; cyber-attacks, information or security breaches or technology failure of ours or of a third party; losses of large customers or government contracts; risks associated with the rights-of-way for the network; disruptions in the relationship with third party vendors; losses of key management personnel and the inability to attract and retain highly qualified management and personnel in the future; changes in the extensive governmental legislation and regulations governing telecommunications providers and the provision of telecommunications services; new or changing tax laws or regulations; telecommunications carriers disputing and/or avoiding their obligations to pay network access charges for use of our network; high costs of regulatory compliance; the competitive impact of legislation and regulatory changes in the telecommunications industry; and liability and compliance costs regarding environmental regulations; and risks associated with discontinuing paying dividends on our common stock. A detailed discussion of these and other risks and uncertainties that could cause actual results and events to differ materially from such forward-looking statements are discussed in more detail in our filings with the SEC, including our reports on Form 10-K and Form 10-Q. Many of these circumstances are beyond our ability to control or predict. Moreover, forward-looking statements necessarily involve assumptions on our part. These forward-looking statements generally are identified by the words “believe,” “expect,” “anticipate,” “estimate,” “project,” “intend,” “plan,” “should,” “may,” “will,” “would,” “will be,” “will continue” or similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements of the Company and its subsidiaries to be different from those expressed or implied in the forward-looking statements. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements that appear throughout this press release. Furthermore, forward-looking statements speak only as of the date they are made. Except as required under the federal securities laws or the rules and regulations of the SEC, we disclaim any intention or obligation to update or revise publicly any forward-looking statements. You should not place undue reliance on forward-looking statements.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220201005333/en/

Jennifer Spaude, Consolidated Communications

Phone: 507-386-3765

Jennifer.spaude@consolidated.com

Source: Consolidated Communications

FAQ

What assets did Consolidated Communications sell?

Consolidated Communications sold its Ohio assets to Hanson Communications.

How much revenue did the Ohio operations generate?

The Ohio operations generated approximately $9 million in revenue in fiscal year 2021.

When will Consolidated Communications discuss the sale of its Ohio assets?

Details on the sale will be discussed during the fourth quarter earnings call scheduled for March 3.

What is the stock symbol for Consolidated Communications?

The stock symbol for Consolidated Communications is CNSL.