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Print Edition StoriesTuesday, June 9, 2009
Atlantic Tele-Network to pay $200M for wireless assets
By Mass High Tech staff
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Atlantic Tele-Network Inc. has announced plans to pay Verizon Wireless $200 million cash to buy wireless spectrum licenses and network assets. The divestiture of properties is required by regulation, in return for Verizon Wireless’ acquisition of Alltel. The wireless properties pertain mainly to 80,000 subscribers in rural parts of Georgia, North Carolina, South Carolina, Illinois, Ohio and Idaho.
ATN’s payment will come from the company’s available cash, including $90 million on hand, and borrowings, including about $75 million in a revolving credit facility, as well as another $50 million in borrowing capacity.
Officials at Salem-based ATN said it expects the transaction to close in the third or fourth quarter of 2009.
According to a statement by ATN president and CEO Michael Prior, the acquisition will help ATN grow its U.S. wireless business, which currently operates in rural areas of 10 states and includes nearly one million retail wireless subscribers, including its international operations.
ATN (Nasdaq: ATNI) announced in January that its rural wireless division, Commnet Wireless LLC, acquired the wireless assets of Nevada-based CC Communications. The company’s subsidiaries also include Guyana Telephone and Telegraph Company Ltd., Bermuda Digital Communications Lts., Sovernet Inc. and Choice Communications LLC.
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