ENGLEWOOD, Colo., Sept. 1,
2021 /PRNewswire/ -- WOW! Internet, Cable &
Phone (NYSE: WOW), a leading broadband service provider, today
announced the completion of the sale of its Cleveland and Columbus, Ohio service areas to Atlantic
Broadband, a U.S. cable operator and subsidiary of Cogeco
Communications Inc. (TSE: CCA) ("Cogeco") for $1.125 billion. From this sale, WOW! expects to
use approximately $1.0 billion in net
proceeds to pay down a portion of the company's debt.
The transaction with Atlantic Broadband is one of two separate,
previously announced agreements for WOW! to sell a total of five
service areas for gross proceeds of $1.8
billion. WOW!'s other agreement to sell its Chicago, Evansville,
Indiana, and Anne Arundel,
Maryland, service areas for $661
million to Astound Broadband (dba RCN, Grande Communications
and Wave Broadband) remains on track to close in the fourth quarter
of 2021. The divestitures will strengthen WOW!'s financial position
and help accelerate WOW!'s broadband-first strategy, which includes
additional investments in edge-outs, greenfield strategies and
commercial services.
"The closing of this deal with Atlantic Broadband is a
significant step in the execution of our broadband-first strategy,
at a critical time in our industry," said Teresa Elder, CEO of WOW!. "Our strengthened
balance sheet bolsters our ability to invest in key growth areas as
we continue to provide reliable, accessible and fast broadband
solutions to our customers across our remaining service areas. And
we are confident that Atlantic Broadband will be a good steward for
our Ohio service area employees
and customers."
Since the transaction was initially announced in June of 2021,
WOW! has been preparing to transition employees and customers in
its Cleveland and Columbus, Ohio, service areas to Atlantic
Broadband. WOW! has entered into a Transition Services Agreement
with Atlantic Broadband to support post-transaction continuity of
service during a transition period.
BofA Securities is acting as financial advisor to WOW!, and
Wachtell, Lipton, Rosen & Katz, as well as Honigman LLP, are
serving as legal counsel.
About WOW! Internet, Cable & Phone
WOW! is one of
the nation's leading broadband providers, with an efficient,
high-performing network that passes 2.5 million residential,
business and wholesale consumers. WOW! provides services in 17
markets, primarily in the Midwest and Southeast, including
Illinois, Michigan, Indiana, Maryland, Alabama, Tennessee, South
Carolina, Florida and
Georgia. With an expansive
portfolio of advanced services, including high-speed Internet
services, cable TV, phone, business data, voice, and cloud
services, the company is dedicated to providing outstanding service
at affordable prices. WOW! also serves as a leader in exceptional
human resources practices, having been recognized seven times by
the National Association for Business Resources as a Best &
Brightest Company to Work For, winning the award for the last three
consecutive years. Visit wowway.com for more information.
Cautionary Statement Regarding Forward-Looking
Statements
Certain statements in this press release that
are not historical facts contain "forward-looking statements"
within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. These forward-looking statements represent our goals,
beliefs, plans and expectations about our prospects for the future
and other future events. Forward-looking statements include all
statements that are not historical fact and can be identified by
terms such as "may," "intend," "might," "will," "should," "could,"
"would," "anticipate," "expect," "believe," "estimate," "plan,"
"project," "predict," "potential," or the negative of these terms.
Although these forward-looking statements reflect our good-faith
belief and reasonable judgment based on current information, these
statements are qualified by important factors, many of which are
beyond our control that could cause our actual results to differ
materially from those in the forward-looking statements. These
factors and other risks that could cause our actual results to
differ materially are set forth in the section entitled "Risk
Factors" in our Annual Report filed on Form 10-K with the
Securities and Exchange Commission ("SEC") on February 24, 2021, and also include the following
factors: uncertainties relating to the use of proceeds from the
closing of the sale of the Ohio
service areas, uncertainties relating to the timing of the
consummation of the sale of additional systems to Astound Broadband
(the "transactions"); the possibility that any or all of the
conditions to the consummation of the transactions may not be
satisfied or waived, including failure to receive any required
regulatory approvals; the effect of the announcement or pendency of
the transaction on the Company's ability to retain key personnel
and to maintain relationships with customers, suppliers and other
business partners; and risks relating to potential diversion of
management attention from the Company's ongoing business
operations. Given these uncertainties, you should not place undue
reliance on any such forward-looking statements. The
forward-looking statements included in this report are made as of
the date hereof or the date specified herein, based on information
available to us as of such date. Except as required by law, we
assume no obligation to update these forward-looking statements,
even if new information becomes available in the future.
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