Windstream to borrow on revolver for acquisition of D&E Communications

By Sara Rosenberg

New York, May 11 - Windstream Corp. plans to draw on its existing revolving credit facility, and use cash on hand, to help fund the acquisition of D&E Communications, according to a news release.

Under the agreement, D&E is being acquired in a transaction valued at about $330 million.

D&E shareholders will receive 0.650 shares of Windstream stock and $5 in cash per each D&E share. Windstream expects to issue about 9.5 million shares of stock valued at $86 million, based on the company's closing stock price on May 8, and pay about $73 million in cash as part of the transaction.

Windstream also will assume estimated net debt of about $171 million.

The acquisition is expected to close in the second half of 2009, subject to certain conditions, including necessary approvals from federal and state regulators and D&E shareholders.

Windstream is a Little Rock, Ark.-based provider of digital phone, high-speed internet and high-definition video and entertainment services. D&E is an Ephrata, Pa.-based integrated communications provider.

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