WASHINGTON (dpa-AFX) - Shares of Frontier Communications Corp. (FTR) surged above 9% on Wednesday after the company announced it is selling its operations and associated assets in Washington, Oregon, Idaho, and Montana to WaveDivision Capital LLC and Searchlight Capital Partners LLC for $1.352 billion in cash.
Frontier's operations in these states serve more than 350,000 residential and commercial customers as of March 31, 2019 and account for $619 million of revenue, $46 million of net income for the twelve months ending March 31, 2019.
The deal is expected to close within one year. Frontier will continue to operate the business and serve customers with existing products and services until the transaction closes.
'The sale of these properties reduces Frontier's debt and strengthens liquidity,' said Dan McCarthy, Frontier President and Chief Executive Officer. 'We are pleased to have a buyer with extensive experience building and operating advanced fiber-based communications assets in these regions.'
FTR is currently trading at $1.895, up $0.165 or 9.54% on the NYSE.
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