Alaska Communications (NASDAQ:ALSK) has completed the sale of its one-third interest in Alaska Wireless Network to General Communication (GNCMA, OTCQB:GNCMB) for $300M.
Net proceeds are being used to pay down ALSK's debt.
"When we announced this transaction in December 2014, we said that by eliminating the negative margins associated with the retail wireless business and by realizing additional synergies, we were targeting a pro-forma run-rate EBITDA of $54 million and a leverage ratio of 3.1x annual EBITDA," says CFO Wayne Graham. "The operational plan to perform at or better than these levels is under way."
ALSK will elaborate on the deal on its March 5 earnings call. The firm is expected to report a net loss of $0.01/share on $76.4M in revenue.
Alaska Communications (NASDAQ:ALSK) is selling its remaining 33% stake in The Alaska Wireless Network (AWN) to GCI Communications for $300M in cash. The carrier plans to use the proceeds to cut its debt load to $165M from $415M.
The deal is expected to close in Q1 2015. Following its close, Alaska expects to "improve Adjusted EBITDA by creating synergies of approximately $12 million," and focus on its wireline and managed IT solutions ops.
For reference, Alaska had a market cap of only $61.4M as of today's close. The company's wireless and AWN revenue fell 26% Y/Y in Q3 due to competition from Verizon and the loss of roaming/backhaul revenue. Subscribers stood at 109K.
Alaska Communications (ALSK) is acquiring the 51% of managed IT services firm TekMate it didn't purchase in 2010. Terms are undisclosed. (PR)
TekMate had $6.8M in 2013 revenue, and claims 60 employees. The company's IT services, which Alaska says will help it offer "seamless integrated systems and personalized technology solutions," officially cover everything from broadband to VoIP to IP video surveillance.
The acquisition lowers Alaska's dependence on standard telecom services a bit as it contends with Verizon's entry into the Alaskan mobile market.