WideOpenWest, Inc. (“WOW!”) (NYSE: WOW) has entered into a definitive agreement to sell a portion of its fiber network in the company´s Chicago market to a subsidiary of Verizon (NYSE: VZ) for USD 225 million in cash, the company said.
In addition, WOW! and Verizon will enter into a new agreement pursuant to which WOW! will complete the build-out of the network in exchange for approximately USD 50 million (which approximates WOW!´s remaining estimate to complete the network build-out), payable as the remaining network elements are completed.
The final build-out of the network is expected to be completed during the second half of 2018 and, when completed, will provide back-haul services to over 500 macro-cell wireless sites and more than 500 small-cell wireless sites.
The transaction is subject to receipt of various consents and approvals as well as other customary closing conditions and is expected to close by early in the first quarter of 2018. WOW!´s financial outlook for the twelve month period ending December 31, 2017, previously included Revenues and Adjusted EBITDA attributable to the network totaling approximately USD 13.7 million and USD 13.2 million, respectively. A portion of the proceeds are expected to be used to pay down WOW!´s existing debt balances.
Morgan Stanley & Co. LLC and Kirkland & Ellis LLP served as exclusive financial and legal advisors, respectively, to WOW! as part of this transaction.
WOW! is one of the nation´s providers of high-speed Internet, cable TV and phone serving communities in the US WOW!´s operating philosophy is to deliver an employee and customer experience that lives up to its name.