McLeodUSA is shedding some of its cable-television properties along with
other telecommunications holdings in the Midwest.
The struggling competitive local-exchange carrier has announced that it is
selling the cable properties -- along with other noncore independent LEC
operations in South Dakota, southwestern Minnesota and northwestern Iowa -- to
Prairie Wave Communications for $88 million.
The cable properties cover approximately 36 small community systems in a
regional cluster. Prairie Wave and McLeodUSA are not releasing the number of
cable subscribers involved.
Formed by a group of investors headed by Alta Communications and Bank of
America LLC Capital Investors, Prairie Wave must still complete senior-debt
financing before closing on the deal sometime in the third quarter.
McLeodUSA is looking for the cash infusion after
emerging from Chapter 11 bankruptcy last month.