7 Washington Communities Approve Verizon Franchise Transfers to Frontier

Source: Frontier Press Release

Seven communities in the state of Washington have voted to approve the transfer of control of local TV franchises from Verizon Northwest to Frontier Communications (NYSE:FTR). The approvals relate to a transaction between Frontier and Verizon Communications (NYSE:VZ), announced May 13, 2009, that includes Verizon’s local exchange businesses in 14 states, including parts of California, and certain customer relationships for long distance services, broadband Internet access and broadband video.

City councils in Mountlake Terrace, Mukilteo and Woodway approved franchise transfers on Monday and Bothell, Edmonds, Redmond and Woodinville approved the transfer of their franchises on Tuesday. The latest votes follow unanimous decisions by Snohomish County (5-0) and Marysville (7-0) to approve Verizon TV franchise transfers to Frontier last week (Nov. 10).

Transfers of local franchise agreements are required for Frontier to offer its own subscription TV service using network facilities that it will acquire from Verizon. Frontier has now received 19 of the required 42 approvals. The transaction is subject to approval by the Washington Utilities and Transportation Commission, utility regulators in five other states and the Federal Communications Commission (FCC).

On October 27, 2009, Frontier’s stockholders voted overwhelmingly to approve the merger agreement and related proposals. Frontier has also received approvals from the California Public Utilities Commission, the Public Utilities Commission of Nevada, and the Public Service Commission of South Carolina. On September 1, 2009, the transaction received early termination of the waiting period required under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.

Qwest Commences Exchange Offer

Source: Qwest Press Release

Qwest Communications International (NYSE:Q) announced the commencement of an offer by its Qwest Corporation (QC) subsidiary to exchange all of its privately placed outstanding 8.375 percent notes due 2016 for newly registered 8.375 percent notes due 2016.

The exchange offer, which is required by the registration rights agreement for the outstanding notes, is being made pursuant to the prospectus dated Nov. 13, 2009.  The terms of the new notes are substantially identical to the terms of the outstanding notes, except that the new notes will be registered under the Securities Act of 1933, as amended. The exchange offer for these notes will expire at 5 p.m. EST on Dec. 14, 2009, unless extended.

Court Confirms Hawaiian Telcom Plan of Reorganization

Source: Hawaiian Telcom Press Release

Hawaiian Telcom Communications announced that the United States Bankruptcy Court for the District of Hawaii in Honolulu confirmed its Plan of Reorganization. Hawaiian Telcom’s confirmed Plan will reduce the Company’s debt from $1.15 billion to $300 million, allowing for greater financial flexibility so that it can execute its business plan and better compete in the marketplace.

Otelco Declares Distribution Payment to IDS Holders

Source: Otelco Press Release

Otelco (Nasdaq:OTT), a wireline telecommunication services provider in Alabama, Maine, Massachusetts, Missouri, New Hampshire and West Virginia, announced that its Board of Directors has declared a distribution of $0.42 per Income Deposit Security (each an "IDS"), which will be made on December 30, 2009 to holders of record at the close of business on December 15, 2009. The distribution represents the twentieth consecutive quarterly distribution since the company completed its initial public offering in December 2004.

Each IDS is comprised of one share of Class A Common Stock and $7.50 principal amount of 13% senior subordinated notes due 2019.

The distribution consists of a dividend of $0.17625 per share of Class A common stock and an interest payment on the senior subordinated notes for the period from September 30, 2009 through December 29, 2009 of $0.24375 per note. Currently, it is anticipated that the Company's dividends will continue to be treated as a return of capital for shareholder tax purposes in 2009 as they were in 2008.

NTELOS Holdings Corp. Announces Workforce Reductions

Source: Ntelos Press Release

NTELOS Holdings Corp. (NASDAQ:NTLS) announced workforce reductions in its wireless and corporate organizations.

Workforce reductions will be achieved through the offering of an early retirement incentive plan, the elimination of certain vacant and budgeted positions and the elimination of some jobs. The reduction is expected to be primarily from support functions, with minimal impact to customer-facing positions.

"We regret the impact this will have on our employees," said James S. Quarforth, chief executive officer of NTELOS. "Economic conditions over the past year have impacted our wireless business and as the wireless industry matures, it is proper for us to proactively take these measures to support continued growth in adjusted EBITDA and free cash flow."

Quarforth continued, "Every company reaches points in time where it is necessary to adjust its cost structure to reflect current business cycles and industry forecasts. Primarily through a voluntary early retirement program, we did this ‘right-sizing’ in our wireline organization last year, and the results are clear as we are now achieving record levels of adjusted EBITDA in those segments. It is the appropriate time to, proactively, do the same for our wireless and corporate operations."

These actions will result in approximately $1.5 million in cash severance and other non-cash pension and other post-retirement curtailment and settlement charges in 2009. Collectively, all these workforce reductions will generate net savings and reduce future expenses by approximately $4 million for the year 2010.