PR Archives:  LatestBy Company By Date

Press Release -- October 19th, 2015
Source: Windstream

Windstream to Sell Data Center Business for $575 Million

Windstream Remains Committed to Providing Data Center Services for Enterprise Customers Through Strategic Partnerships

LITTLE ROCK, Ark., Oct. 19, 2015 (GLOBE NEWSWIRE) -- Windstream
(NYSE:WIN, news, filings), a leading provider of advanced network communications,
today announced that it has entered into a definitive agreement with
TierPoint, a leading national provider of cloud, colocation and managed
services, to sell Windstream's data center business in an all cash
transaction for $575 million.

As part of the transaction, Windstream will establish an ongoing
reciprocal strategic partnership with TierPoint, allowing both
companies to sell their respective products and services to each
other's prospective customers through referrals. This structure will
allow Windstream to focus capital on its core telecom offerings while
continuing to offer traditional data center services to enterprise
customers across a broader data center footprint.

"Data center services will remain an integral component of our
enterprise service offering," said Tony Thomas, president and CEO. "We
expect the divested data center business to continue its significant
growth under the leadership of TierPoint, and we look forward to
partnering closely with them to provide advanced data center services
to our enterprise customers."

"This is a great strategic fit for TierPoint and our customers," said
Jerry Kent, Chairman and CEO for TierPoint. "Windstream Hosted
Solutions and its employees have earned a reputation for providing
excellent customer service and innovative enterprise-class solutions.
We value these team members as a key asset in the acquisition and their
expertise adds to our strength and focus on providing a superior level
of customer care. We're also very pleased to enter into a long-term
strategic partnership with Windstream, allowing both companies to
leverage the expertise and respective strengths of our organizations."

The boards of both companies have approved the transaction, which is
expected to close within the next 2-4 months, subject to customary
conditions and approvals.

Financial Information

The data centers being divested generated the following financial

(Dollars in millions) 3 Months Ended June 30, 2015 Second Quarter 2015 Annualized
Revenue $30.5 $122.0
Adjusted OIBDA $10.2 $40.8

Non-GAAP Financial Measures

This press release references the non-GAAP financial measure Adjusted
OIBDA for the divested data centers. A reconciliation of this measure
to the most directly comparable GAAP measure is presented below:

(Dollars in Millions) 3 Months Ended Second Quarter
June 30, 2015 2015 Annualized
Operating loss under GAAP $(2.0) $(8.0)
Depreciation and amortization 12.0 48.0
Stock-based compensation 0.2 0.8
Adjusted OIBDA $10.2 $40.8

Additional Information

RBC Capital Markets served as financial advisor and Bryan Cave LP
served as legal advisor to Windstream. Paul Hastings LLP served as
legal advisor to TierPoint.

About Windstream

Windstream, a FORTUNE 500 company, is a leading provider of advanced
network communications and technology solutions, including cloud
computing and managed services, to businesses nationwide. The company
also offers broadband, phone and digital TV services to consumers
primarily in rural areas. For more information, visit the company's
online newsroom at or follow on Twitter at

About TierPoint

TierPoint is a leading national provider of cloud, colocation and
managed services designed to help organizations improve business
performance and manage risk. With corporate headquarters in St. Louis,
MO, TierPoint operates highly-redundant, carrier-neutral data centers
in the states of Washington, Texas, Oklahoma, Pennsylvania, Maryland,
New York, Massachusetts, Connecticut and Florida.

Cautionary Statement Regarding Forward-Looking Statements

Windstream claims the protection of the safe-harbor for forward-looking
statements contained in the Private Securities Litigation Reform Act of
1995. Forward-looking statements, including statements regarding the
completion of the transaction, expected benefits of the transaction,
the ongoing relationship between the two parties after any closing of
the transaction, and the growth potential of the business after any
closing are subject to uncertainties that could cause actual future
events and results to differ materially from those expressed in the
forward-looking statements. Such statements are based on estimates,
projections, beliefs and assumptions that Windstream believes are
reasonable but are not guarantees of future events and results. Actual
future events and results of Windstream may differ materially from
those expressed in these forward-looking statements as a result of a
number of important factors.

Factors that could cause actual results to differ materially from those
contemplated in Windstream's forward-looking statements include, among

-- risks related to the anticipated timing of the closing of the proposed
-- the ability to receive, or delays in obtaining, the necessary regulatory
approvals or third party consents required to complete the transaction;
-- risks that other conditions to the closing of the transaction may not be
-- the risk that the financing required to fund the transaction is not
obtained; and
-- those additional factors under "Risk Factors" in Item 1A of Part I of
Windstream's Annual Report on Form 10-K for the year ended December 31,
2014, and in subsequent filings with the Securities and Exchange
Commission at

In addition to these factors, actual future performance, outcomes and
results may differ materially because of more general factors
including, among others, general industry and market conditions and
growth rates, economic conditions, and governmental and public policy

Windstream undertakes no obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise. The foregoing review of factors that could
cause Windstream's actual results to differ materially from those
contemplated in the forward-looking statements should be considered in
connection with information regarding risks and uncertainties that may
affect Windstream's future results included in other filings by
Windstream with the Securities and Exchange Commission at

CONTACT: Windstream
Media Relations Contact:
David Fish, 501-748-4898

Investor Relations Contact:
Mary Michaels, 501-748-7578

Media Contact:
Patrick Baczenas, 314-720-3136

PR Archives: Latest, By Company, By Date