tw telecom Closes Xspedius Communications Acquisition
Acquisition Expands Metro Fiber Footprint to 75 MarketsAuthor: Carole Curtin
Pursuant to the terms of the merger agreement, the Company issued 18,249,428 shares of Class A Common Stock and paid $216 million in cash, including an adjustment for working capital. The Company assumed no debt in the transaction.
"We continue to believe in the value of the last mile connectivity to enterprise customers, and this acquisition further expands our network reach and market density, enhancing our ability to further fuel enterprise growth," said Larissa Herda, Chairman, CEO and President of Time Warner Telecom. "We have been preparing for the integration of the two companies, and look forward to achieving the synergistic capabilities of the powerful combined fiber footprint and advanced network solutions created by the merger of both operations."
Concurrent with the closing of the Xspedius acquisition, the Company's wholly-owned subsidiary, Time Warner Telecom Holdings Inc., drew down the balance of its secured Term Loan B credit facility. The draw down was used to fund the $250 million redemption, including the redemption fees and accrued interest, of its $240 million principal amount Second Priority Senior Secured Floating Rate Notes due 2011 to be paid on November 6, 2006, and $150 million was used to fund a portion of the acquisition.