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Windstream Closes $333M D&E Purchase

Windstream Corp. (WIN) has closed the $333 million D&E Communications acquisition, just as it embarks on the $643 million takeover of NuVox Corp.

D&E Communications is a Pennsylvania-based CLEC. Its shareholders received .65 shares of Windstream stock and $5 in cash for each D&E share. Windstream issued approximately 9.4 million shares of stock worth $95 million, based on its Nov. 9 closing stock price. Windstream also paid approximately $74 million in cash as part of the transaction and took on net debt of about $164 million. The Little Rock, Ark.-headquartered RLEC funded the deal with cash and credit.

D&E has 114,000 ILEC access lines and about 46,000 high-speed Internet customers.

Windstream expects the transaction to save $25 million in operating costs and capital expenditures.

Windstream’s stock closed down .4 percent at $10.02 on Tuesday.


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