North American and Asian Operators Account for 90% of Cloud Spending

Source: Informa Press Release

New research from Informa’s Telecom Cloud Monitor has found that European operators accounted for only 7% of the US$13.5 billion that operators committed on cloud assets in 2011. North American and Asian operators accounted for 90%, or US$12 billion.

Informa’ research highlights fundamental differences among the 127 operators worldwide currently selling cloud services. European operators are focusing on launching services at home, while North American operators are acquiring client bases and assets at home and abroad. Asian operators are pursuing a blended strategy of infrastructure investment and service launch nationally and internationally. Meanwhile, Latin American, Middle Eastern and African operators are building up domestic infrastructure and competences.

In 2011, the top five telecom cloud investors were AT&T, Centurylink, NTT, Telstra, Verizon and Windstream. Leading European operators investing in the cloud were Deutsche Telekom, Orange, Portugal Telecom and Telefonica.

• Globally, telecom operators launched a cloud service every other day in 2011, totalling 170 new services.
• In 2011, 127 telecom operators were active in cloud services, compared to only 80 in 2010.
• Five service clusters accounted for 70% of service launches: infrastructure as a service, storage, unified communications, business productivity applications, and security.

Windstream Announces Partial Redemption of its Senior Notes

Source: Windstream Press Release

Windstream Corp. (Nasdaq:WIN) announced that its wholly owned subsidiary, PAETEC Holding Corp., is calling for redemption $150.0 million aggregate principal amount of its outstanding 9.5% Senior Notes due 2015 on January 3, 2012, at a redemption price payable in cash that is equal to $1,047.50 per $1,000 principal amount of Notes, plus accrued and unpaid interest to, but excluding, the redemption date.

Windstream Wraps Up PAETEC Deal

Source: Windstream Press Release

Windstream Corp. (Nasdaq:WIN) announced that it has completed its acquisition of PAETEC Holding Corp. in a transaction valued at approximately $2.3 billion.

PAETEC shareholders received 0.460 shares of Windstream stock for each PAETEC share owned at closing. Windstream issued shares and assumed equity awards representing approximately 73.4 million shares of Windstream stock valued at approximately $863 million, based on the company’s closing stock price on Nov. 30, 2011. Windstream also assumed PAETEC’s net debt of approximately $1.4 billion.

The transaction is expected to be accretive to free cash flow per share, excluding merger and integration costs, in the first year.

Windstream expects to generate annual pre-tax operating cost synergies of approximately $100 million and capital expenditure savings of approximately $10 million, which are expected to be fully realized in three years. Windstream also expects to incur merger and integration costs of approximately $50 million in operating expense in the first year and approximately $55 million in capital expenditures over the first three years.

The transaction also includes tax assets with an estimated net present value of approximately $250 million.

Windstream/PAETEC Deal Receives FCC Nod

Source: Windstream Press Release

Windstream Corp. (Nasdaq:WIN) announced that the Federal Communications Commission has approved its application to acquire PAETEC Holding Corp. The companies announced the transaction on Aug. 1.

“This merger creates a $6 billion company with nationwide reach and continues Windstream’s transformation to a next-generation communications and technology provider with a full suite of enterprise-focused solutions,” said Jeff Gardner, Windstream president and CEO.

Windstream now has received all regulatory approvals and expects to complete the transaction by Dec. 1.

Windstream Completes Sale of Senior Notes

Source: Windstream Press Release

Windstream Corp. (Nasdaq:WIN) announced that it has successfully completed its previously announced private offering of $500 million aggregate principal amount of its 7.50% Senior Notes due June 1, 2022.

Windstream expects to use the net proceeds of the offering to redeem all of the approximately $201.5 million aggregate principal amount of its outstanding 8.625% Senior Notes due 2016, with the remaining net proceeds to be used to repay amounts that Windstream has borrowed under its revolving credit facility. Assuming consummation of its pending acquisition of PAETEC Holding Corp. (“PAETEC”), which, pending federal regulatory approvals, is expected to close by the end of 2011, Windstream intends to use borrowings under its revolving credit facility to repurchase the $300.0 million aggregate principal amount of PAETEC’s outstanding 9.5% Senior Notes due 2015.