Shenandoah Telecommunications Company Completes Sale of its Wireless Assets and Operations to T-Mobile

Rhea-AI Summary

Shenandoah Telecommunications Company (NASDAQ: SHEN) has successfully closed the sale of its wireless assets to T-Mobile USA for $1.94 billion. This amount includes a $60 million settlement concerning management fees from Sprint, a T-Mobile subsidiary, and accounts for transaction expenses. The company utilized $684 million of the sale proceeds to fully repay its outstanding debt and terminate its credit facility. Shentel provides broadband services across the Mid-Atlantic and operates over 6,800 route miles of fiber and 223 macro cellular towers.

Positive

• Sale of wireless assets for $1.94 billion enhances liquidity.
• $684 million used to eliminate outstanding debt strengthens balance sheet.

Negative

• None.

EDINBURG, Va., July 01, 2021 (GLOBE NEWSWIRE) -- Shenandoah Telecommunications Company (“Shentel” or the “Company”) (NASDAQ: SHEN) announced today the closing of the previously announced sale of its Wireless assets and operations to T-Mobile USA, Inc. (“T-Mobile”). The Company received cash proceeds of $1.94 billion, inclusive of the approximately $60 million settlement of the waived management fees by Sprint Corporation, an indirect subsidiary of T-Mobile (“Sprint”), and net of certain transaction expenses.

As required by the terms of its 2018 credit facility, $684 million of the proceeds were used to fully repay all outstanding debt and to terminate the facility and related interest rate swap contracts.

About Shenandoah Telecommunications
Shenandoah Telecommunications Company (Shentel) provides broadband services through its high speed, state-of-the-art cable, fiber optic and fixed wireless networks to customers in the Mid-Atlantic United States. The Company’s services include: broadband internet, video, and voice; fiber optic Ethernet, wavelength and leasing; and tower colocation leasing. The Company owns over 6,800 route miles of fiber and 223 macro cellular towers. For more information, please visit www.shentel.com.

This release contains forward-looking statements about Shentel regarding, among other things, its business strategy, its prospects and its financial position. These statements can be identified by the use of forward-looking terminology such as “believes,” “estimates,” “expects,” “intends,” “may,” “will,” “should,” “could,” or “anticipates” or the negative or other variation of these or similar words, or by discussions of strategy or risks and uncertainties. The forward-looking statements are based upon management’s beliefs, assumptions and current expectations and may include comments as to Shentel’s beliefs and expectations as to future events and trends affecting its business that are necessarily subject to uncertainties, many of which are outside Shentel’s control. Although management believes that the expectations reflected in the forward-looking statements are reasonable, forward-looking statements are not, and should not be relied upon as, a guarantee of future performance or results, nor will they necessarily prove to be accurate indications of the times at which such performance or results will be achieved, and actual results may differ materially from those contained in or implied by the forward-looking statements as a result of various factors. A discussion of other factors that may cause actual results to differ from management’s projections, forecasts, estimates and expectations is available in Shentel’s filings with the Securities and Exchange Commission. Those factors may include natural disasters, pandemics and outbreaks of contagious diseases and other adverse public health developments, such as COVID-19, changes in general economic conditions, increases in costs, changes in regulation and other competitive factors. The forward-looking statements included are made only as of the date of the statement. Shentel undertakes no obligation to revise or update such statements to reflect current events or circumstances after the date hereof, or to reflect the occurrence of unanticipated events, except as required by law.

CONTACTS:

Shenandoah Telecommunications Company

Jim Volk
Senior Vice President - Chief Financial Officer
540-984-5168
Jim.Volk@emp.shentel.com

FAQ

What was the total amount received by Shentel from the T-Mobile sale?

Shenandoah Telecommunications received $1.94 billion from the sale of its wireless assets to T-Mobile USA.

How much of the proceeds from the sale did Shentel use to pay off debt?

Shentel used $684 million of the proceeds to fully repay all outstanding debt.

What impact does the sale of assets have on Shentel's financial position?

The sale improves Shentel's liquidity and strengthens its balance sheet by eliminating debt.

When did Shentel announce the closing of the asset sale?

Shentel announced the closing of the asset sale on July 1, 2021.

What are the main services provided by Shenandoah Telecommunications?

Shentel provides broadband services including internet, video, voice, and fiber optic leasing.