REG-VerizonCommunication: Verizon to purchase XO Communications’ fiber business <Origin Href="QuoteRef">VZ.N</Origin>

Verizon CommunicationsAnnouncement

22/02/2016 14:00

Verizon continues focus on network superiority with agreement to purchase XO
Communications' fiber business

NEW YORK, Feb. 22, 2016 -- In a move to continue to strengthen the foundation
of America's best networks, Verizon Communications Inc. (NYSE, Nasdaq: VZ)
today announced it has signed an agreement to purchase XO Communications'
fiber-optic network business for approximately $1.8 billion.

Verizon's ownership of XO's fiber-based IP (Internet protocol) and Ethernet
networks will help better serve enterprise and wholesale customers. In
addition, acquired fiber facilities will help Verizon continue to densify its
cell network.

The transaction is subject to customary regulatory approvals and is expected to
close in the first half of 2017.

Verizon expects to receive several financial benefits from the transaction,
including a step-up in the basis of the assets as well as operating and capital
expense savings. The net present value of the operational synergies is expected
to be in excess of $1.5 billion.

Separately, Verizon will simultaneously lease available XO wireless spectrum,
with an option to buy XO's entity that holds its spectrum by year-end 2018.

Citigroup Global Markets Inc acted as financial adviser and Debevoise &
Plimpton LLP acted as legal adviser to Verizon.

Verizon Communications Inc. (NYSE, Nasdaq: VZ) employs a diverse workforce of
177,700 and generated nearly $132 billion in 2015 revenues. Verizon operates
America's most reliable wireless network, with more than 112 million retail
connections nationwide. Headquartered in New York, the company also provides
communications and entertainment services over America's most advanced
fiber-optic network, and delivers integrated business solutions to customers
worldwide.

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Forward-looking statements
In this communication we have made forward-looking statements. These statements
are based on our estimates and assumptions and are subject to risks and
uncertainties. Forward-looking statements include the information concerning
our possible or assumed future results of operations. Forward-looking
statements also include those preceded or followed by the words "anticipates,"
"believes," "estimates," "hopes" or similar expressions. For those statements,
we claim the protection of the safe harbor for forward-looking statements
contained in the Private Securities Litigation Reform Act of 1995. The
following important factors, along with those discussed in our filings with the
Securities and Exchange Commission (the "SEC"), could affect future results and
could cause those results to differ materially from those expressed in the
forward-looking statements: adverse conditions in the U.S. and international
economies; the effects of competition in the markets in which we operate;
material changes in technology or technology substitution; disruption of our
key suppliers' provisioning of products or services; changes in the regulatory
environment in which we operate, including any increase in restrictions on our
ability to operate our networks; breaches of network or information technology
security, natural disasters, terrorist attacks or acts of war or significant
litigation and any resulting financial impact not covered by insurance; our
high level of indebtedness; an adverse change in the ratings afforded our debt
securities by nationally accredited ratings organizations or adverse conditions
in the credit markets affecting the cost, including interest rates, and/or
availability of further financing; material adverse changes in labor matters,
including labor negotiations, and any resulting financial and/or operational
impact; significant increases in benefit plan costs or lower investment returns
on plan assets; changes in tax laws or treaties, or in their interpretation;
changes in accounting assumptions that regulatory agencies, including the SEC,
may require or that result from changes in the accounting rules or their
application, which could result in an impact on earnings; and the inability to
implement our business strategies.

Media contact:
Bob Varettoni
908.559.6388
robert.a.varettoni@verizon.com

SOURCE  Verizon


 



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