U.S. TelePacific Corp., its affiliates and subsidiaries (“TPx”) has entered into a sale and lease back agreement with Uniti Group Inc. (“Uniti” – NASDAQ: UNIT) that includes approximately 650 route miles of TPx’s metro fiber assets in California, Massachusetts, Nevada and Texas. The proceeds from the $95M sale will enable TPx to pay down existing debt and invest in new managed services as it grows its national business providing unified communications, managed IT services, continuity and connectivity solutions to enterprise customers. TPx will lease back these metro fiber miles for the next 15 years, with options to extend the lease up to an additional 25 years. TPx will continue to operate and maintain the network after the sale.
“TPx customers, partners and employees will see no change as a result of this transaction,” said Russell Shipley, Executive Vice President of Wholesale, Engineering and Operations for TPx. “This agreement lets us take advantage of today’s favorable market valuation for fiber assets to invest in the new managed services our customers need to grow their businesses, nationwide, while continuing to operate our current fiber routes.
“Our customers and agent partners won’t experience any difference in the quality, responsiveness and service we have traditionally built our business around. What they will benefit from, though, is the ever-richer set of managed services that this transaction will enable TPx to invest in. That’s a win-win for all concerned.”
TPx expects that the transaction will close in the third quarter of this year, following required regulatory approvals.
Riley FBR, Inc. provided investment advice to TPx. Morgan, Lewis & Bockius provided legal guidance.
About TPx Communications
TPx Communications is the premier managed services provider, redefining the way enterprises grow, compete and communicate. TPx’s unified communications, managed IT services, continuity and connectivity solutions all work together to “reach a higher state of connectedness” – with customers, employees, clients, suppliers, locations, applications and more. TPx can provide guaranteed performance wherever there’s a broadband connection, erasing the limitations of geography, incumbent providers and capital expenditure. Headquartered in Los Angeles, with major locations across the country, TPx has delivered more than 15 years of consecutive revenue growth, driven by a DNA of obsessive customer service and being a trusted advisor to its customers. For more information, go to www.tpx.com.