Shentel releases details of expected use of proceeds from $1.95B sale of assets to T-Mobile
Shenandoah Telecommunications Company announced this week the expected uses of the approximately $1.5 billion of after-tax proceeds to be received from the sale of Shentel’s Wireless assets and operations to T-Mobile US Inc.
Shentel currently expects to use the proceeds to, among other things:
- As required by Shentel’s credit agreement, repay approximately $702 million of outstanding term loans and swap liabilities and terminate the respective agreements;
- Issue a special dividend of $18.75 per share to Shentel’s shareholders;
- Provide adequate liquidity for growth and potential strategic acquisitions; and
- Provide liquidity for general corporate purposes.
Shentel expects to pay the special dividend in the second quarter 2021 after the close of the Shentel Wireless transaction, subject to the approval of Shentel’s Board of Directors.
“We are pleased to provide clarity on the expected sale price of Shentel Wireless and our ability to return significant value to our shareholders,” President and CEO Christopher E. French said. “The expected transaction closing in the second quarter along with the continued rapid expansion of our Glo Fiber to the Home and Beam fixed wireless services are part of our transformation to a broadband centric company. Shentel has a long history of growth and technology innovation and we are very excited about the new opportunities to bring state-of-the-art broadband to our customers and create value for our shareholders.”