ABRY Partners Completes Acquisition of RCN Corporation
26 August 2010 - 6:03PM
Marketwired
RCN Corporation (NASDAQ: RCNI) today announced the completion of
its acquisition by private investment fund ABRY Partners, LLC.
Pursuant to the agreement reached on March 5, 2010, RCN
shareholders will receive $15.00 in cash for each share of RCN they
own. In conjunction with the transaction, RCN's common stock will
no longer trade on the NASDAQ Global Select Market and will be
de-listed accordingly.
RCN's video, high-speed Internet and premium voice services
business, which previously constituted RCN's residential and small
business segment, will operate as a standalone business and will be
led by CEO Jim Holanda. Mr. Holanda is the former President of
Patriot Media in Central New Jersey and current CEO of Choice Cable
TV of Puerto Rico. Steven J. Simmons will serve as the company's
Chairman. Mr. Simmons is the former CEO of Patriot Media and
current Chairman of Choice Cable TV of Puerto Rico. Both are cable
veterans with substantial track records of improving local and
regional cable system operations. In 2006 Patriot Media received
the industry's highly-coveted "Independent Cable Operator of the
Year" award in recognition of the Central New Jersey system's
outstanding achievement in the areas of technology, operations and
community involvement.
"RCN has been a leader in customer service, advanced
technological infrastructure, product bundling and delivery in a
very competitive environment. We look forward to further developing
every aspect of our customers' experience by offering the best
possible service and value," said Holanda.
The RCN Metro business will be led by CEO Mike Sicoli,
previously EVP & CFO of RCN Corporation. "This transaction is a
major step forward for RCN Metro's customers and employees.
Separating RCN Metro will help us realize the full potential of our
business through dedicated investments in our network and focused
resources serving our carrier and enterprise customers. I am
excited and proud to have the opportunity to lead the RCN Metro
team through its next phase of growth," said Mike Sicoli.
RCN shareholders of record will soon receive a letter of
transmittal with instructions describing how to receive their
proceeds. Banks, brokerage firms or other nominees will provide
those shareholders who hold their shares in "street name" with
their proceeds from the transaction. For more information,
stockholders who hold their shares in "street name" should contact
their bank, broker or other holder of record, and stockholders of
record may contact BNY Mellon Shareholder Services at (201)
680-6573 or toll free at (800) 777-3674. Stockholders of record
should wait to receive the letter of transmittal before
surrendering their shares.
SunTrust Robinson Humphrey acted as exclusive financial advisor
to ABRY Partners and also served as Left Lead Joint Bookrunner for
the debt financing. GE Capital Markets, Inc. and SG Americas
Securities also acted as Joint Bookrunners for the debt
financing.
About RCN RCN Telecom Services, LLC is a
competitive broadband services provider delivering all-digital and
high definition video, high-speed internet and premium voice
services to residential and small-medium business customers under
the brand names of RCN and RCN Business Services, respectively. RCN
Metro Optical Networks delivers fiber-based high-capacity data
transport services to large commercial customers, primarily large
enterprises and carriers, targeting the metropolitan central
business districts in the company's geographic markets. RCN's
primary service areas include Washington, D.C., Philadelphia,
Lehigh Valley (PA), New York City, Boston and Chicago.
About ABRY Partners Based in Boston, MA,
ABRY Partners is one of the most experienced and successful private
investment firms in North America focused solely on media,
communications, business and information services investments.
Since 1989, ABRY Partners has completed over $21 billion of
leveraged transactions and other private equity and mezzanine
investments, representing investments in approximately 450
properties.
RCN Forward-Looking Statements This press
release contains forward-looking statements within the meaning of
Section 21E of the Securities Exchange Act of 1934, as amended. One
can identify these forward-looking statements by the use of words
such as "expect," "anticipate," "plan," "may," "will," "estimate"
or other similar expressions. Because such statements apply to
future events, they are subject to risks and uncertainties that
could cause the actual results to differ materially. Information on
risk factors that may affect the business and financial results of
RCN can be found in RCN's Annual Report on Form 10-K and in the
filings of RCN made from time to time with the SEC. RCN undertakes
no obligation to correct or update any forward-looking statements,
whether as a result of new information, future events or
otherwise.
Add to Digg Bookmark with del.icio.us Add to Newsvine
Contact: RCN Michele Murphy (703) 434-8430 Email
Contact
Rcn (NASDAQ:RCNI)
Historical Stock Chart
Von Mai 2024 bis Jun 2024
Rcn (NASDAQ:RCNI)
Historical Stock Chart
Von Jun 2023 bis Jun 2024