PAETEC completes acquisition of US LEC |
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Thu, 01 Mar 2007 00:07
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FAIRPORT, N.Y. (AP) - Privately owned PAETEC Corp., which supplies voice and broadband data services, said Wednesday it completed the $450 million acquisition of telecommunications services provider US LEC Corp.The combined company, which will be known as PAETEC Holding Corp., will begin trading Thursday on the Nasdaq Stock Market under the ticker symbol 'PAET.'Under terms of the deal, US LEC stockholders will receive one PAETEC share for every US LEC share held, and PAETEC stockholders will receive 1.62 PAETEC shares for every PAETEC Corp. share held.PAETEC obtained $850 million of new credit facilities at the merger's close. The companies used $800 million of facility proceeds and cash on hand to refinance their senior secured debt and buy back all outstanding US LEC convertible preferred shares.The merger was approved by both companies' shareholders at meetings held Wednesday. PAETEC will have nearly 2,300 employees serving more than 45,000 medium-sized and large business customers.PAETEC Chairman and Chief Executive Arunas A. Chesonis will continue in his current role, and Chief Operating Officer EJ Butler and Chief Financial Officer Keith Wilson also will retain their positions.US LEC co-founder Richard T. Aab will serve as vice chairman of the PAETEC board.PAETEC will remain headquartered in Fairport, N.Y., and will maintain operations in Charlotte, N.C., where US LEC is headquartered.US LEC shares fell 2 cents to close at $10.15 on the Nasdaq Stock Market.Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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