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Print Edition StoriesTuesday, January 26, 2010
Atlantic Tele-Network to tap new $150M loan for Alltel assets buy
By Rodney H. Brown
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Atlantic Tele-Network Inc., a telecommunications service provider based in Salem, has added a new $150 million loan to fund the planned purchase of assets of the former Alltel Corp. from the Verizon Wireless unit of Verizon Communications Inc.
In June, Atlantic Tele-Network (Nasdaq: ATNI) reported it planned to pay Verizon Wireless $200 million cash to buy wireless spectrum licenses and network assets. The divestiture of properties — mainly to 800,000 subscribers in rural parts of Georgia, North Carolina, South Carolina, Illinois, Ohio and Idaho — is required by regulation, in return for Verizon Wireless’ acquisition of Alltel.
Officials at Atlantic Tele-Network said the company plans to borrow the entire amount of the new $150 million term loan for use in the proposed Alltel assets acquisition, which should be completed, subject to certain regulatory consents, during the first quarter of 2010.
Atlantic Tele-Network said it expects annual service revenue, not including revenue from handset and equipment sales, from the acquired Alltel assets to be approximately $450 million to $500 million for the first twelve months after the close of the deal.
In January of 2009, Atlantic Tele-Network announced 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.
Atlantic Tele-Network, which lists approximately 825 employees, reported revenue for the first six months of 2009 of $181 million and a profit of $30.4 million.
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