STAMFORD, Conn.--(BUSINESS WIRE)--
Frontier Communications Corporation (NYSE: FTR) reported today that its
pending acquisition of Verizon Communications' (NYSE: VZ) local
wireline operations in Illinois has been unanimously approved by the
Illinois Commerce Commission (ICC). Frontier will review the written
order when it is issued.
"Frontier strongly agrees with Governor Pat Quinn'sApril 16th
statement to the ICC that the state should promote and facilitate
investments in technology and telecommunications progress that will
create jobs in Illinois and will provide opportunities and access to our
rural, low-income, and disadvantaged communities," said Dan McCarthy,
Executive Vice President and Chief Operating Officer of Frontier. "Like
Governor Quinn, Frontier believes that broadband network investments
will hasten innovation in education, government, public safety, health
care and economic and community development in the state."
Illinois is the eighth state to approve the transaction, joining Oregon,
Arizona, Ohio, Nevada, South Carolina, California and Washington.
Regulators in West Virginia and the Federal Communications Commission
must approve the transaction or related transfers.
Forward-Looking Language
This presentation contains forward-looking statements that are made
pursuant to the safe harbor provisions of The Private Securities
Litigation Reform Act of 1995. These statements are made on the basis of
management's views and assumptions regarding future events and business
performance. Words such as "believe," "anticipate," "expect" and similar
expressions are intended to identify forward-looking statements.
Forward-looking statements (including oral representations) involve
risks and uncertainties that may cause actual results to differ
materially from any future results, performance or achievements
expressed or implied by such statements. These risks and uncertainties
are based on a number of factors, including but not limited to: Our
ability to complete the acquisition of access lines from Verizon; the
failure to obtain, delays in obtaining or adverse conditions contained
in any required regulatory approvals for the Verizon transaction; for
two years after the merger, we may be limited in the amount of capital
stock that we can issue to make acquisitions or to raise additional
capital; our indemnity obligation to Verizon may discourage, delay or
prevent a third party from acquiring control of us during the two year
period following the merger in a transaction that our stockholders might
consider favorable; the ability to successfully integrate the Verizon
operations into Frontier's existing operations; the effects of increased
expenses due to activities related to the Verizon transaction; the
ability to successfully migrate Verizon'sWest Virginia operations from
Verizon owned and operated systems and processes to Frontier owned and
operated systems and processes; the risk that the growth opportunities
and cost synergies from the Verizon transaction may not be fully
realized or may take longer to realize than expected; the sufficiency of
the assets to be acquired from Verizon to enable us to operate the
acquired business; disruption from the Verizon transaction making it
more difficult to maintain relationships with customers, employees or
suppliers; the effects of greater than anticipated competition requiring
new pricing, marketing strategies or new product or service offerings
and the risk that we will not respond on a timely or profitable basis;
reductions in the number of our access lines that cannot be offset by
increases in High Speed Internet subscribers and sale of other products;
our ability to sell enhanced and data services in order to offset
ongoing declines in revenue from local services, switched access
services and subsidies; the effects of ongoing changes in the regulation
of the communications industry as a result of federal and state
legislation and regulation; the effects of changes in the availability
of federal and state universal funding to us and our competitors; the
effects of competition from cable, wireless and other wireline carriers
(through voice over internet protocol (VOIP) or otherwise); our ability
to adjust successfully to changes in the communications industry and to
implement strategies for growth; adverse changes in the credit markets
or in the ratings given to our debt securities by nationally accredited
ratings organizations, which could limit or restrict the availability,
or increase the cost, of financing; continued reductions in switched
access revenues as a result of regulation, competition and/or technology
substitutions; the effects of changes in both general and local economic
conditions on the markets we serve, which can affect demand for our
products and services, customer purchasing decisions, collectability of
revenue and required levels of capital expenditures related to new
construction of residences and businesses; our ability to effectively
manage service quality; our ability to successfully introduce new
product offerings, including our ability to offer bundled service
packages on terms that are both profitable to us and attractive to our
customers; changes in accounting policies or practices adopted
voluntarily or as required by generally accepted accounting principles
or regulators; our ability to effectively manage our operations,
operating expenses and capital expenditures, and to repay, reduce or
refinance our debt; the effects of bankruptcies and home foreclosures,
which could result in difficulty in collection of revenues and loss of
customers; the effects of technological changes and competition on our
capital expenditures and product and service offerings, including the
lack of assurance that our ongoing network improvements will be
sufficient to meet or exceed the capabilities and quality of competing
networks; the effects of increased medical, retiree and pension expenses
and related funding requirements; changes in income tax rates, tax laws,
regulations or rulings, and/or federal or state tax assessments; the
effects of state regulatory cash management policies on our ability to
transfer cash among our subsidiaries and to the parent company; our
ability to successfully renegotiate union contracts expiring in 2010 and
beyond; declines in the value of our pension plan assets, which could
require us to make contributions to the pension plan in 2011 and beyond;
our ability to pay dividends in respect of our common shares, which may
be affected by our cash flow from operations, amount of capital
expenditures, debt service requirements, cash paid for income taxes and
our liquidity; the effects of any unfavorable outcome with respect to
any of our current or future legal, governmental or regulatory
proceedings, audits or disputes; the possible impact of adverse changes
in political or other external factors over which we have no control;
and the effects of hurricanes, ice storms or other natural disasters.
These and other uncertainties related to our business are described in
greater detail in our filings with the Securities and Exchange
Commission, including our reports on Forms 10-K and 10-Q, and the
foregoing information should be read in conjunction with these filings.
We undertake no obligation to publicly update or revise any
forward-looking statements or to make any other forward-looking
statement, whether as a result of new information, future events or
otherwise unless required to do so by securities laws.
Additional Information and Where to Find It
This filing is not a substitute for the definitive prospectus/proxy
statement included in the Registration Statement on Form S-4 that
Frontier filed, and the SEC has declared effective, in connection with
the proposed transactions described in the definitive prospectus/proxy
statement. INVESTORS ARE URGED TO READ THE DEFINITIVE PROSPECTUS/PROXY
STATEMENT BECAUSE IT CONTAINS IMPORTANT INFORMATION, INCLUDING DETAILED
RISK FACTORS. The definitive prospectus/proxy statement and other
documents filed or to be filed by Frontier with the SEC are or will be
available free of charge at the SEC's website, www.sec.gov,
or by directing a request when such a filing is made to Frontier, 3 High
Ridge Park, Stamford, CT 06905-1390, Attention: Investor Relations.
This communication shall not constitute an offer to sell or the
solicitation of an offer to buy securities, nor shall there be any sale
of securities in any jurisdiction in which such offer, solicitation or
sale would be unlawful prior to registration or qualification under the
securities laws of such jurisdiction.
Frontier's stockholders approved the proposed transactions on October
27, 2009, and no other vote of the stockholders of Frontier or Verizon
is required in connection with the proposed transactions.
Source: Frontier Communications Corporation
Contact: Frontier Communications Corporation
Steve Crosby, 916-206-8198
SVP, Government and Regulatory Affairs
steven.crosby@frontiercorp.com