February 25, 2003 -- (WEB HOST INDUSTRY REVIEW) -- Communications carrier Broadwing Inc. (Broadwing.com) announced on Tuesday that it has reached an agreement to sell the assets of its broadband business, Broadwing Communications Services Inc., including the Broadwing name, to privately-held C III Communications LLC for $129 million in cash.
According to the terms of the agreement, C III Communications will assume certain long-term operating liabilities of Broadwing Communications Services, will continue providing services to customers and will retain current employees. The agreement was signed after being approved by both companies' boards and is subject to customary closing conditions.
"This announcement represents a significant step forward in our five-point restructuring plan, especially given our commitment to strengthening our financial position and reducing debt," said Kevin Mooney, Broadwing's Chief Executive Officer. "We continue to work toward other key objectives, including renegotiating our current bank credit facility and closing our previously announced $350 million financing commitment."
The assets acquired by C III Communications include 18,700 recently completed route miles of fiber optic cables, the company's intelligent all-optical switched network, a state-of-the-art network operations center and all of the other network elements necessary to provide integrated and managed broadband telecommunications services.
