CommunicationsSales & Leasing Inc. completed its purchase of fiber-network provider PEG Bandwidth LLC.
To finance the cash portion of the deal, the company said it borrowed $321 million under itsrevolving credit facility. The deal also called for theissuance of 1 million shares of Communications Sales & Leasing's common stockand the issuance of 87,500 shares of 3% series A convertible preferred stock.
When it announced the deal in January,Communications Sales & Leasing said the purchase price for all of PEGBandwidth's outstanding equity interests was $409million, subject to adjustment.
PEG brings with it a fiber networkof more than 300,000 strand miles across Illinois and the Northeast, mid-Atlanticand south-central regions of the U.S. It was sold by affiliates of Associated PartnersLP, an investment and operating partnership managed by David and Bill Berkman.
Citigroup and Stephens Inc. servedas financial advisers to Communications Sales & Leasing, and Davis Polk &Wardell LLP served as transaction counsel.