Frontier Shareholders Approve Acquisition of Verizon Wireline in 14 States

Source: Frontier Press Release

Frontier Communications Corporation (NYSE:FTR) announced that its shareholders have overwhelmingly voted to adopt the merger agreement pursuant to which Frontier has agreed to acquire Verizon Communications Inc.’s (NYSE:VZ) local exchange businesses in 14 states and certain related customer relationships for long distance services, broadband Internet access and broadband video. The shareholders also voted to approve an amendment to Frontier’s restated certificate of incorporation to increase the number of authorized shares of Frontier common stock, and to approve the issuance of Frontier common stock pursuant to the merger agreement.

”This is a resounding vote of support from our shareholders,” said Maggie Wilderotter, Chairman and CEO of Frontier. “This acquisition will be transformational for Frontier, giving us greater scale, a balance sheet approaching investment grade, and a fantastic platform for growth. Shareholder approval marks an important milestone in the transaction process, and we’re on track for closing during the second quarter of 2010. Our entire team is hard at work with their counterparts at Verizon to ensure a successful integration. All of us at Frontier are looking forward to providing great products and services to our new customers and to welcoming our new employees."

FairPoint Reaches Agreement with Bank Lenders

Source: Fairpoint Press Release

FairPoint Communications (NYSE:FRP) (the "Company"), has announced that it has reached agreement on a comprehensive financial restructuring plan (the "Restructuring Plan") with lenders (the "Supporting Lenders") holding more than 50 percent of the outstanding debt under its secured credit facility. The Restructuring Plan is expected to reduce the Company’s debt by $1.7 billion thereby providing a long-term solution for the Company’s balance sheet.

To facilitate the implementation of the Restructuring Plan, the Company also announced that it and all of its subsidiaries have filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York (the "Court"). The Restructuring Plan must be approved by the Court and the Company intends to promptly file a plan of reorganization reflecting the Restructuring Plan with the Court. The Company and its subsidiaries expect to continue to operate their business in the ordinary course throughout the Chapter 11 process under the jurisdiction of the Court while it seeks confirmation of the Restructuring Plan.

In connection with the Restructuring Plan, the Company has received commitments from certain of the Supporting Lenders for a $75 million debtor-in-possession revolving credit facility (the "DIP Facility") to ensure sufficient liquidity during the Chapter 11 process. The Company currently has approximately $46 million of cash on hand and expects to continue to generate positive operating cash flow. In total, including the DIP Facility, the Company will have available liquidity of approximately $121 million. In addition, under the terms of the 

Qwest Wireless Customers Must Switch Wireless Providers by Oct. 31

Source: Qwest Press Release

Qwest will discontinue Qwest Wireless cellular phone service on Oct. 31, 2009, and is encouraging remaining Qwest Wireless customers to switch to a new wireless provider in advance of the Oct. 31 shutdown. Customers who do not transition to a new wireless service provider by Oct. 31 will have their Qwest Wireless service disconnected, and will forfeit their Qwest Wireless phone number.

Shenandoah Company Announces Increased Dividend

Source: Shentel Press Release

The Board of Directors of Shenandoah Telecommunications Company (Shentel) (Nasdaq:SHEN) declared a cash dividend of $0.32 per share. The dividend is an increase of $0.02 per share or 7% over the 2008 dividend. The dividend will be payable December 1, 2009, to shareholders of record on November 10, 2009. The total payout to shareholders will be approximately $7.6 million.

Frontier Announces Successful Completion of Debt Tender Offer

Source: Frontier Press Release

Frontier Communications Corporation (NYSE:FTR) announced that it has successfully completed its previously announced debt tender offer and has applied the full “Maximum Payment Amount” of $700 million toward the repurchase of its outstanding 9.250% Senior Notes due 2011 (the “2011 Notes”) and 6.250% Senior Notes due 2013 (the “2013 Notes”). As a result, Frontier accepted for purchase for cash approximately $0.37 million aggregate principal amount of the 2011 Notes and approximately $83 million aggregate principal amount of the 2013 Notes. The notes accepted for purchase today are in addition to the approximately $564 million aggregate principal amount of 2011 Notes accepted for purchase pursuant to the tender offer on October 1, 2009. Approximately $76 million aggregate principal amount of 2011 Notes and approximately $617 million aggregate principal amount of 2013 Notes remain outstanding following the tender offer.

A total of approximately $419 million aggregate principal amount of 2013 Notes were validly tendered. As a result of the acceptance priority given to tenders of 2011 Notes and the $700 million Maximum Payment Amount for all notes tendered, Frontier accepted for purchase all 2011 Notes tendered and also accepted for purchase 2013 Notes tendered on a pro rata basis as provided under the terms of the tender offer. The proration factor for the 2013 Notes was 0.1990789.

Frontier financed the purchase of the tendered notes with the proceeds of its recent offering of $600 million aggregate principal amount of 8.125% Senior Notes due 2018, plus cash on hand.

Frontier’s maturities through 2013 now consist of approximately $7 million maturing in 2010, $280 million maturing in 2011, $180 million maturing in 2012, and $746 million maturing in 2013.