Cequel Closes Deal6/15/2003 8:00 PM Eastern
C III Communications LLC, a joint venture between Corvis Corp. and Cequel III, the telecom investment and management firm headed by former Charter Communications Inc. CEO Jerry Kent, said last Friday that it has closed its purchase of Broadwing Communications for $91 million.
C III had agreed in February to purchase Broadwing from Cincinnati Bell for $129 million. Cequel III spokesman Pete Abel said the price was reduced because certain criteria in the original agreement were not met. He said details will be provided by Corvis on July 31, when it reports its second-quarter financial results.
Corvis is the majority partner in C III Communications, with a 96% stake. Cincinnati Bell has 3% in the partnership, while Cequel III has 1% equity.
As part of the deal, C III also agreed to purchase $17 million in working capital from Broadwing — basically a working capital loan previously issued by Cincinnati Bell — on which payment will be deferred for one year.
C III also announced that industry veteran Mark Spagnolo, former CEO of data communications provider UUNET and Metro Media Fiber Networks, has been named interim CEO of Broadwing.