Source: Fairpoint Press Release

FairPoint Communications (NYSE:FRP) has closed its previously announced transaction in which FairPoint merged with Northern New England Spinco Inc. (Spinco), an entity which owned Verizon Communications’ (NYSE:VZ) landline and certain related operations in Maine, New Hampshire and Vermont. FairPoint is the surviving company in the merger.

As a result of the transaction closing, FairPoint is now the eighth largest telephone company in the United States with operations throughout the country. FairPoint remains committed to enhancing and expanding the communications networks and infrastructures that serve the company’s customer base, while ensuring that it maintains an appropriate and serviceable debt level and returns value to shareholders through dividends.

On a combined pro forma basis as of December 31, 2007, FairPoint has approximately 1,906,748 total access line equivalents which includes 1,110,722 residential voice access lines; 505,449 business voice access lines; and 290,577 HSD subscribers, including DSL, cable modem and wireless broadband.

In connection with the merger, Verizon received a $1.16 billion cash payment from Spinco and $551 million of 13 1/8% senior notes due in 2018 issued by Spinco, and Verizon's stockholders received approximately 54 million shares of FairPoint's common stock. In total, this results in FairPoint total senior secured debt of $1.635 billion, senior notes of $551 million and total shares outstanding of approximately 89 million.

Source: Fairpoint Press Release

FairPoint Communications (NYSE:FRP) has announced it has reached tentative agreements with the T-9 Council of the International Brotherhood of Electrical Workers (IBEW) and Communications Workers of America (CWA), the two unions representing the approximately 2,500 employees who will be continuing employment after FairPoint’s acquisition of Verizon Communications’ (NYSE:VZ) landline and certain related operations in Maine, New Hampshire and Vermont. The transaction is expected to close on March 31, 2008.

All parties involved in the negotiations were able to come to acceptable terms on a number of key provisions, including wage and pension increases for active employees, healthcare benefits for active employees and retirees, and 401(k) improvements.

"This long-term agreement is a big step in alleviating the apprehension of our membership in changing companies. Now that this is out of the way, we can concentrate on making the transition in the three northern states as seamless as possible for our customers," said Peter McLaughlin, chairman of IBEW SCT-9.

"CWA is very pleased with the agreement we’ve been able to work out with FairPoint," said Chris Shelton, District 1 vice president. "We know the members we represent are the best in the world at what they do. With their experience and expertise and FairPoint’s commitment to improving service to Maine, New Hampshire and Vermont, the future looks bright for telecommunication in northern New England."

Both agreements are subject to ratification by the respective union’s membership.