FairPoint IDS offering to be 42.8 million IDS, $33 million notes

New York, July 13 - FairPoint Communications Inc.'s upcoming offering of Income Deposit Securities will be made up of 42.8 million IDS and $33 million of additional senior subordinated notes due 2019, according to an S-1/A registration statement filed with the Securities and Exchange Commission Tuesday.

The 42.8 million IDS will represent 42.8 million shares of class A common stock and $209.8 million of the senior subordinated notes due 2019.

FairPoint anticipates an offering price of $15.00 to $17.00 per IDS.

After 45 days, holders will be able to split the IDS into their component shares and notes.

The IDS will be listed on the New York Stock Exchange under the symbol "FRP".

CIBC World Markets, Citigroup and Deutsche Bank Securities will be joint bookrunners with Banc of America Securities, Credit Suisse First Boston, RBC Capital Markets, UBS Investment Bank and Wachovia Securities as co-managers.

In total, the IDS offering and related transactions are expected to raise $1.1 billion - $685 million from the IDS, $33 million from the additional notes and $400 million from a new term loan.

Proceeds from the offerings will be used to repay all outstanding loans under the existing credit facility and to fund the repurchase of all its outstanding senior notes and senior subordinated notes.

FairPoint is a Charlotte, N.C., provider of telecommunications services.

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