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Entries in Ntelos (2)

Tuesday
Aug112015
DateTuesday, August 11, 2015 at 3:59PM

Shenandoah Telecommunication to Acquire NTELOS

On Monday, August 10th, Shenandoah Telecommunications Company (NASDAQ: SHEN) announced that it will acquire NTELOS Holdings, Corp. (NASDAQ: NTLS), also known as nTelos, for approximately $586.00 million.  As part of the deal, certain assets will also be exchanged with Sprint (NYSE: S). The deal is subject to regulatory approval and is expected to close by the beginning of 2016.

Valuation Analysis and Deal Metrics

Transaction Facts

  • ShenTel will finance the acquisition with a new credit facility. 
  • nTelos shareholders will receive $9.25 per share in cash at closing.   
  • Deal has already been approved by both company’s Board of Directors and is awaiting shareholder approval. 
  • ShenTel’s affiliate agreement with Sprint will be revised.  
  • nTelos spectrum licenses will be transferred to Sprint.
  • 291,000 Sprint customers will become ShenTel Sprint affiliate customers in addition to the 281,500 customers ShenTel picks up from nTelos.
  • ShenTel acquires $130 million net operating loss carryforwards, of which it expects to utilize all but $20 million.

Strategic Considerations

  • Transaction overlaps areas of existing ShenTel cable, fiber, wireless and wireline networks.
  • Overlapping should allow ShenTel to eliminate roughly 148 redundant cell sites, as well as leverage fiber and tower assets.
  • Combination of a ShenTel's local market focus along with the Sprint brand could lead to an increase subscribers.
  • Increased access and scale of Sprint’s shared services could help to increase operating efficiencies. 
  • Sprint will be adding value to the transaction, partly due to $252.00 million in reduced affiliate agreement fees over the next 5 to 6 years. 


JSICA’s Take

  • Transaction increases Shenandoah’s Mid-Atlantic footprint while providing ShenTel a regional area to deploy LTE services and utilize its fiber assets for backhaul. 
  • Acquisition will approximately double ShenTel’s covered POPS, wireless subs, revenue, and OIBDA, before taking into account any potential synergies realized.
  • Strengthens ShenTel’s affiliate relationship with Sprint by revising its current agreement and extending the term by five years to 2029.

AuthorJared Taylor | Comments Off | | | Print ArticlePrint Article
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Monday
Jan232012
DateMonday, January 23, 2012 at 12:33PM

Galaxie Music Mediaroom Launches with Hawaiian Telcom, Lumos and Paul Bunyan

Source: Hawaiian Telcom Press Release

Stingray Digital, a Montreal-based provider of music services to multi-channel operators, announces the launch of its Galaxie Digital Music Service with Hawaiian Telcom, Lumos Networks (formerly known as nTelos) and Paul Bunyan Communications.

These companies are the first television services provider in the US to launch the Galaxie Mediaroom Application. This exciting new application gives Galaxie users an enhanced, interactive experience that leverages the flexibility of the Microsoft Mediaroom IPTV platform. The application allows users to browse all 50 channels and see what’s playing without changing the current channel, provides a pleasing look and feel to the Galaxie service and includes album art for the currently playing, and previously played songs on each channel. Galaxie users can also review the playlist of the last 24 hours of songs played on each channel, the most requested feature.

The 50 commercial-free music channels of the Galaxie music service will be included for no additional fee for all TV service customers of Hawaiian Telcom, Lumos Networks and Paul Bunyan Communications. Users will enjoy the professionally programmed music channels in all popular genres including Rock, Pop, Jazz, Classical, Country and many more.

AuthorDeborah Rand | Comments Off | | | Print ArticlePrint Article
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