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CS&L Completes $409M Deal for PEG Bandwidth

1 min read

Communications Sales & Leasing Inc. of Little Rock announced Monday the completion of its $409 million acquisition of PEG Bandwidth LLC, a telecommunications infrastructure provider owned by affiliates of private equity investment firm Associated Partners LP of New York and Pennsylvania.

CS&L borrowed $321 million under its revolving credit facility to fund the cash portion of the purchase price and transaction costs, according to a news release. The deal totals $450 million, including $41 million in capital lease obligations, $315 million cash, issuance of one million shares of CS&L common stock and the issuance of 87,500 shares of CS&L’s 3 percent Series A Convertible Preferred Stock, Arkansas Business reported in January.

CS&L is a publically traded real estate investment trust that split from Windstream Holdings Inc. of Little Rock last year.

In a January news release, CS&L called PEG “a leading provider of infrastructure solutions, including cell site backhaul and dark fiber for telecom carriers and enterprises” that has “a rich fiber-to-the-tower network” and “strong customer relationships with over 80 percent of revenues from the largest wireless carriers.”

PEG has a fiber network of more than 300,000 strand miles in Illinois and the northeast and south-central regions of the country. 

The PEG management team will be retained, and Associated Partners Managing Director Scott Bruce will join the CS&L board of directors. PEG will continue to function as a separate business.

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