November 7, 2016 / 12:33 PM / a year ago

BRIEF-Windstream, EarthLink to merge in $1.1 billion deal

Nov 7 (Reuters) - Windstream Holdings Inc

* Windstream and earthlink to merge in $1.1 billion transaction

* Windstream holdings inc - deal expected to be significantly accretive to adjusted free cash flow in year one

* Deal includes anticipated annual operating and capital expenditure synergies of more than $125 million

* Windstream holdings inc - earthlink shareholders will receive 0.818 shares of windstream common stock for each earthlink share owned

* Windstream expects to issue approximately 93 million shares of stock valued at approximately $673 million

* Earthlink shareholders will receive 0.818 shares of windstream common stock for each earthlink share owned

* Windstream holdings inc - after transaction closes, tony thomas will serve as president and ceo, bob gunderman will serve as cfo of combined co

* Windstream holdings - windstream shareholders will own about 51 percent and earthlink shareholders will own about 49 percent of combined company

* Windstream holdings - deal represents net present value of approximately $900 million, or more than $4.70 per windstream share, $3.85 per earthlink share

* At time of closing, windstream intends to refinance earthlink’s gross debt of approximately $436 million

* Upon close, three of earthlink’s existing directors will join current windstream board of directors

* Combined company, which will retain windstream name, will be headquartered in little rock, ark

* Deal expected to be significantly accretive to adjusted free cash flow in year one

* Press release - windstream and earthlink to merge in $1.1 billion transaction Source text for Eikon: Further company coverage:

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