FairPoint acquires Verizon's wireline operations in New England

By Lisa Kerner

Charlotte, N.C., March 31 - FairPoint Communications, Inc. merged with Northern New England Spinco Inc., an entity that owned Verizon Communications Inc.'s landline and certain related operations in New England, to become the eighth-largest telephone company in the United States, according to a FairPoint news release.

A previously announced distribution ratio gives Verizon stockholders one share of FairPoint common stock for every 53.0245 shares of Verizon common stock held as of the March 7 record date, or 0.0189 of a FairPoint share for each share of Verizon common stock.

Verizon's stockholders received approximately 54 million shares of FairPoint's common stock.

In addition, Verizon received a $1.16 billion cash payment from Spinco and $551 million of 13 1/8% senior notes due in 2018 issued by Spinco.

FairPoint assumed approximately $1.64 billion of debt.

In January 2007, FairPoint agreed to acquire Verizon's wireline operations in Vermont, Maine and New Hampshire.

Verizon, based in New York, delivers broadband and other wireline and wireless communication solutions.

Charlotte, N.C.-based FairPoint is a provider of communications services to rural communities.

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