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EX-3.2 - EXHIBIT 3.2 - RCN CORP /DE/ | c05450exv3w2.htm |
EX-3.1 - EXHIBIT 3.1 - RCN CORP /DE/ | c05450exv3w1.htm |
8-K - FORM 8-K - RCN CORP /DE/ | c05450e8vk.htm |
Exhibit 99.1
Contact:
RCN
Michele Murphy, (703) 434-8430, michele.murphy@rcn.net
Michele Murphy, (703) 434-8430, michele.murphy@rcn.net
ABRY Partners Completes Acquisition of RCN Corporation
HERNDON, Va., August 26, 2010 RCN Corporation (NASDAQ:RCNI) today announced the completion of
its acquisition by private investment fund ABRY Partners, LLC. Pursuant to the agreement reached
on March 5, 2010, RCN shareholders will receive $15.00 in cash for each share of RCN they own. In
conjunction with the transaction, RCNs common stock will no longer trade on the NASDAQ Global
Select Market and will be de-listed accordingly.
RCNs video, high-speed Internet and premium voice services business, which previously constituted
RCNs residential and small business segment, will operate as a standalone business and will be led
by CEO Jim Holanda. Mr. Holanda is the former President of Patriot Media in Central New Jersey and
current CEO of Choice Cable TV of Puerto Rico. Steven J. Simmons will serve as the companys
Chairman. Mr. Simmons is the former CEO of Patriot Media and current Chairman of Choice Cable TV
of Puerto Rico. Both are cable veterans with substantial track records of improving local and
regional cable system operations. In 2006 Patriot Media received the industrys highly-coveted
Independent Cable Operator of the Year award in recognition of the Central New Jersey systems
outstanding achievement in the areas of technology, operations and community involvement.
RCN has been a leader in customer service, advanced technological infrastructure, product bundling
and delivery in a very competitive environment. We look forward to further developing every aspect
of our customers experience by offering the best possible service and value, said Holanda.
The RCN Metro business will be led by CEO Mike Sicoli, previously EVP & CFO of RCN Corporation.
This transaction is a major step forward for RCN Metros customers and employees. Separating RCN
Metro will help us realize the full potential of our business through dedicated investments in our
network and focused resources serving our carrier and enterprise customers. I am excited and proud
to have the opportunity to lead the RCN Metro team through its next phase of growth, said Mike
Sicoli.
RCN shareholders of record will soon receive a letter of transmittal with instructions describing
how to receive their proceeds. Banks, brokerage firms or other nominees will provide those
shareholders who hold their shares in street name with their proceeds from the transaction. For
more information, stockholders who hold their shares in street name should contact their bank,
broker or other holder of record, and stockholders of record may contact BNY Mellon
Shareholder Services at (201) 680-6573 or toll free at (800) 777-3674. Stockholders of record
should wait to receive the letter of transmittal before surrendering their shares.
SunTrust Robinson Humphrey acted as exclusive financial advisor to ABRY Partners and also served as
Left Lead Joint Bookrunner for the debt financing. GE Capital Markets, Inc. and SG Americas
Securities also acted as Joint Bookrunners for the debt financing.
About RCN
RCN Telecom Services, LLC is a competitive broadband services provider delivering all-digital and
high definition video, high-speed internet and premium voice services to residential and
small-medium business customers under the brand names of RCN and RCN Business Services,
respectively. RCN Metro Optical Networks delivers fiber-based high-capacity data transport
services to large commercial customers, primarily large enterprises and carriers, targeting the
metropolitan central business districts in the companys geographic markets. RCNs primary service
areas include Washington, D.C., Philadelphia, Lehigh Valley (PA), New York City, Boston and
Chicago.
About ABRY Partners
Based in Boston, MA, ABRY Partners is one of the most experienced and successful private investment
firms in North America focused solely on media, communications, business and information services
investments. Since 1989, ABRY Partners has completed over $21 billion of leveraged transactions
and other private equity and mezzanine investments, representing investments in approximately 450
properties.
RCN Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 21E of the
Securities Exchange Act of 1934, as amended. One can identify these forward-looking statements by
the use of words such as expect, anticipate, plan, may, will, estimate or other similar
expressions. Because such statements apply to future events, they are subject to risks and
uncertainties that could cause the actual results to differ materially. Information on risk
factors that may affect the business and financial results of RCN can be found in RCNs Annual
Report on Form 10-K and in the filings of RCN made from time to time with the SEC. RCN undertakes
no obligation to correct or update any forward-looking statements, whether as a result of new
information, future events or otherwise.
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