Consolidated Communications Holdings Inc. (NASDAQ: CNSL) stock declined by 0.58% at last close whereas the CNSL stock-price gains by 11.01% in the pre0market trading session. Consolidated Communications Holdings is committed to advancing individuals, businesses, and communities by providing the most up-to-date, dependable communications solutions.
Consolidated Communications revealed that it has obtained all-important regulatory approvals from the state Public Utilities Commission (PUC) for the transition of CNSL’s contingent payment right to an affiliate of Searchlight Capital Partners, as a component of Searchlight’s previously reported investment in the company. The CPR has now been converted into an extra number of shares of the Company’s common stock, which, when combined with the shares issued to Searchlight at the finalization of the first phase of the Investment on Oct. 2, 2020, represents approximately 24.5 percent of the Company’s outstanding shares.
Bob Udell, president, and CEO at Consolidated Communications stated,
The fiber expansion project, which is funded entirely, is off to a rapid start. They’re happy to have received shareholder and state regulatory clearances, and they’re on pace to close on the whole Searchlight investment later this year, pending FCC permission. The goal of this collaboration is to create long-term value for all consolidated shareholders. Their business is undergoing a change that will provide major benefits to consumers, businesses, and carriers across their service areas.
The investment is divided into two parts. Searchlight contributed $350 million in return for 8% of the Firm’s ordinary shares in the first round, which was concluded on Oct. 2, 2020. Searchlight also got the CPR and the right to access an unsecured subordinated note with a principal amount of $395.5 million under the terms of the deal.
All of the Company’s proposals relating to the Investment won overwhelming shareholder approval in May 2021. CNSL has also received the applicable state PUC regulatory approvals for the Investment, as well as clearance under the Hart-Scott-Rodino Act.