Windstream completes acquisition of CT Communications, Inc.

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Aug 31, 2007

Windstream completes acquisition of CT Communications, Inc.

LITTLE ROCK, Ark. – Windstream Corporation (NYSE: WIN) announced today that it has completed its acquisition of CT Communications, Inc. (NASDAQ: CTCI) in an all-cash transaction valued at approximately $585 million, including the assumption of cash and debt. Under the terms of the merger agreement, the holders of CT Communications stock will receive $31.50 per share in cash for their shares.   


The acquisition strengthens Windstream’s position as the leading communications and entertainment company serving rural America and adds approximately 156,000 access lines and 29,500 broadband customers. Windstream now serves more than 3.3 million access lines and 782,000 broadband customers.


"This acquisition nearly doubles Windstream’s presence in North Carolina and provides the opportunity to generate significant operating efficiencies with our contiguous markets," said Jeff Gardner, president and chief executive officer. "The transaction also allows our company to continue to grow cash flows through a disciplined acquisition strategy while reducing the dividend payout ratio."


About Windstream

 

Windstream Corporation provides voice, broadband and entertainment services to customers in 16 states. The company has approximately 3.3 million access lines and about $3.2 billion in annual revenues. For more information, visit www.windstream.com.


Safe Harbor

 

Windstream claims the protection of the safe-harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to uncertainties that could cause actual future events and results to differ materially from those expressed in the forward-looking statements. These forward-looking statements are based on estimates, projections, beliefs, and assumptions that Windstream believes are reasonable but are not guarantees of future events and results. Actual future events and results of Windstream may differ materially from those expressed in these forward-looking statements as a result of a number of important factors. Factors that could cause actual results to differ materially from those contemplated above include, among others: adverse changes in economic conditions in the markets served by Windstream; the extent, timing and overall effects of competition in the communications business; failure to realize expected benefits as a result of the transactions described above, including the ability to integrate CT Communications’ business into existing operations and realize the synergies expected from this transaction; material changes in the communications industry generally that could adversely affect vendor relationships with equipment and network suppliers and customer relationships with wholesale customers; changes in communications technology; the risks associated with the separation of the publishing business; the potential for adverse changes in the ratings given to Windstream's debt securities by nationally accredited ratings organizations; the availability and cost of financing in the corporate debt markets; the effects of work stoppages; the effects of litigation, including any litigation with respect to the above-referenced transactions; and the effects of federal and state legislation, rules and regulations governing the communications industry. In addition to these factors, actual future performance, outcomes and results may differ materially because of more general factors including, among others, general industry and market conditions and growth rates, economic conditions, and governmental and public policy changes. Windstream undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The foregoing review of factors that could cause Windstream's actual results to differ materially from those contemplated in the forward-looking statements should be considered in connection with information regarding risks and uncertainties that may affect Windstream's future results included in Windstream's filings with the Securities and Exchange Commission (SEC) at www.sec.gov.


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