Exhibit 99.1
| | |
FOR IMMEDIATE RELEASE | | MEDIA CONTACT: |
January 9, 2009 | | Robin B. Nicol |
| | Verizon Wireless |
| | 908.559.7515 |
| | Robin.Nicol@verizonwireless.com |
VERIZON WIRELESS COMPLETES PURCHASE OF ALLTEL; CREATES
NATION’S LARGEST WIRELESS CARRIER
Acquisition Will Expand Most Reliable Wireless Network and Deliver Advanced
Wireless Broadband Network to Millions More Customers Across the United States
BASKING RIDGE, N.J. – Verizon Wireless, a joint venture of Verizon Communications (NYSE: VZ) and Vodafone (NYSE LSE: VOD), announced today it has completed its purchase of Alltel Corporation, from Atlantis Holdings LLC. Consistent with the terms of the transaction announced on June 5, 2008, Verizon Wireless paid approximately $5.9 billion for the equity of Alltel. Immediately prior to the closing, the Alltel debt associated with the transaction, net of cash, was approximately $22.2 billion
The acquisition expands Verizon Wireless’ network coverage to approximately 290 million people, nearly the entire United States population, and increases the company’s customers by 12.9 million, after conforming adjustments and before required divestitures, making it the largest wireless carrier in the country with more than 83.7 million total customers, based on third quarter 2008 reported results from both companies. Approximately 2.1 million of those total customers are in markets that will be divested by Verizon Wireless in the coming months, as required by the Department of Justice (DOJ) and the Federal Communications Commission (FCC) as a condition of the merger approval.
Market Integration
In markets that will be retained and integrated with Verizon Wireless’ operations, the company will continue to use the Alltel brand for the next several months, as it works to integrate networks, convert billing systems and upgrade high-speed wireless broadband service. Verizon Wireless will maintain Alltel’s existing GSM networks in retained Alltel markets to continue serving the roaming needs of GSM carriers’ customers.
Alltel customers in markets to be retained will receive a letter during the next few weeks informing them about the purchase and the wide array of new and advanced services that will be available to them when they transition to Verizon Wireless, including the latest wireless data services delivered on the nation’s largest 3G high-speed wireless broadband network. In addition, when Alltel systems are upgraded in the near future, Alltel customers will have access to the largest mobile-to-mobile calling community in the country, allowing them to use their mobile-to-mobile minutes for calls with Verizon Wireless customers without using their plan minutes.
Alltel customers do not need to take any action at this time. Customers’ current service plans, prices and features, including My Circle, will remain the same throughout the transition. Verizon Wireless will notify customers, by mail, about any changes that may impact their service in the future. Since Verizon Wireless and Alltel use the same technology platform, the vast majority of customers will be able to use their current handset after the transition to Verizon Wireless. Additional information for customers is available atwww.alltel.com.
Verizon Wireless will re-brand Alltel operations in the retained markets in phases, beginning in the second quarter and continuing through the third quarter of 2009, as billing conversions are completed throughout the country. During the transition period, Alltel-branded stores will remain open to serve customers.
Alltel employees below executive level will continue in their present jobs as Verizon Wireless assesses staffing needs required to best serve customers and achieve synergies.
Divestiture Markets
As a condition of the regulatory approvals by DOJ and the FCC that were required to complete the Alltel purchase, Verizon Wireless will divest overlapping properties in 105 markets across 24 states. Alltel operations will be divested in most of these markets. Verizon Wireless will divest its own pre-merger operations in four markets, as well as the Rural Cellular Corporation (RCC) operations in southern Minnesota and western Kansas, operating under the Unicel brand, which Verizon Wireless acquired last August.
Verizon Wireless has placed licenses and assets for the markets to be divested in a management trust. The trust will continue to operate the markets under their current brands until they are sold to one or more buyers. As a result, these markets will not be integrated into Verizon Wireless operations.
Financial Information
Verizon Wireless expects to realize synergies with a net present value, after integration costs, of more than $9 billion, driven by aggregate capital and operating expense savings.
Verizon Wireless used a combination of cash generated from operations, Alltel cash, proceeds from capital markets transactions, and borrowings from lenders under credit facilities, including the borrowing, immediately prior to the acquisition, of $12.35 billion under a new 364-day credit facility, to purchase the equity of Alltel and to acquire and repay Alltel’s debt. Following the completion of a series of financing transactions later today, Alltel and its subsidiaries will have reduced the debt that is owed to third parties to approximately $2.7 billion, which is expected to decline further to approximately $2.5 billion within the next 30 days.
Verizon Wireless announced its agreement, subject to regulatory approval, to acquire Alltel in June 2008. The DOJ approved the transaction in October and the FCC approved it in early November.
EDITOR’S NOTE: A list of markets to be divested, by state and county, appears at the end of this release.
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About Verizon Wireless
Verizon Wireless operates the nation’s most reliable wireless voice and data network, serving 83.7 million customers. Headquartered in Basking Ridge, N.J., with 85,000 employees nationwide, Verizon Wireless is a joint venture of Verizon Communications (NYSE: VZ) and Vodafone (NYSE and LSE: VOD). For more information, go to: www.verizonwireless.com. To preview and request broadcast-quality video footage and high-resolution stills of Verizon Wireless operations, log on to the Verizon Wireless Multimedia Library at www.verizonwireless.com/multimedia.
Alltel Properties that will be sold
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State/CMA | | Counties |
| | |
Alabama | | |
Dothan AL MSA (CMA 246); | | Dale, Houston |
AL RSA 7 (CMA 313); | | Butler, Coffee, Covington, Crenshaw, Geneva, Pike |
| | |
Arizona | | |
AZ RSA 5 (CMA 322); | | Gila, Pinal |
| | |
California | | |
CA RSA 6 (CMA 341); | | Inyo, Mono |
| | |
Colorado | | |
CO RSA 4 (CMA 351); | | Chaffee, Custer, Fremont, Lake, Park |
CO RSA 5 (CMA 352); | | Cheyenne, Elbert, Kit Carson, Lincoln |
CO RSA 6 (CMA 353); | | Dolores, Hinsdale, La Plata, Montezuma, Ouray, San Juan, San Miguel |
| | |
CO RSA 7 (CMA 354); | | Alamosa, Archuleta, Conejos, Mineral, Rio Grande, Saguache |
CO RSA 8 (CMA 355); | | Bent, Crowley, Kiowa, Otero, Prowers |
CO RSA 9 (CMA 356); | | Baca, Costilla, Huerfano, Las Animas |
| | |
Georgia | | |
Albany GA MSA (CMA 261); | | Dougherty, Lee |
GA RSA 6 (CMA 376); | | Crawford, Harris, Meriwether, Pike, Talbot, Taylor, Upson |
GA RSA 7 (CMA 377); | | Johnson, Laurens, Washington, Wilkinson |
GA RSA 8 (CMA 378); | | Bulloch, Burke, Candler, Emanuel, Glascock, Jefferson, Jenkins, Screven, Treutlen, Warren |
GA RSA 9 (CMA 379); | | Clay, Crisp, Dooly, Macon, Marion, Quitman, Randolph, Schley, Stewart, Sumter, Terrell, Webster |
GA RSA 10 (CMA 380); | | Ben Hill, Bleckley, Coffee, Dodge, Irwin, Jeff Davis, Montgomery, Pulaski, Telfair, Turner, Wheeler, Wilcox |
GA RSA 12 (CMA 382); | | Camden, Glynn, Liberty, Long, McIntosh, Wayne |
GA RSA 13 (CMA 383); | | Baker, Calhoun, Decatur, Early, Grady, Miller, Mitchell, Seminole, Thomas |
| | |
Idaho | | |
ID RSA 2 (CMA 389); | | Adams, Gem, Idaho, Payette, Valley, Washington |
ID RSA 3 (CMA 390); | | Boise, Custer, Lemhi |
| | |
Illinois | | |
IL RSA 8 (CMA 401); | | Alexander, Franklin, Jackson, Jefferson, Johnson, Massac, Perry, Pulaski, Randolph, Union, Washington, Williamson |
IL RSA 9 (CMA 402); | | Clay, Edwards, Gallatin, Hamilton, Hardin, Lawrence, Pope, Richland, Saline, Wabash, Wayne, White |
| | |
Iowa | | |
Sioux City IA-NE MSA (CMA 253); | | Woodbury, Dakota |
IA RSA 8 (CMA 419); | | Crawford, Harrison, Monona, Shelby |
IA RSA 16(CMA 427) | | Cherokee, Lyon, O’Brien, Osceola, Plymouth, Sioux |
| | |
Michigan | | |
Muskegon MI MSA (CMA 181) | | Muskegon, Oceana |
| | |
Minnesota | | |
MN RSA 1 (CMA 482); | | Kittson, Marshall, Pennington, Red Lake, Roseau |
MN RSA 2 (CMA 483); | | Beltrami, Clearwater, Lake of the Woods, Mahnomen, Norman |
| | |
Montana | | |
Billings MT MSA (CMA 268); | | Yellowstone |
Great Falls MT MSA (CMA 297); | | Cascade |
MT RSA 1 (CMA 523); | | Flathead, Glacier, Lake, Lincoln, Pondera, Sanders, Teton |
MT RSA 2 (CMA 524); | | Blaine, Chouteau, Hill, Liberty, Toole |
MT RSA 4 (CMA 526); | | Daniels, Dawson, McCone, Richland, Roosevelt, Sheridan, Wibaux |
MT RSA 5 (CMA 527); | | Granite, Lewis and Clark, Mineral, Missoula, Powell, Rivalli |
MT RSA 6 (CMA 528); | | Broadwater, Deer Lodge, Jefferson, Judith Basin, Meagher, Silver Bow, Wheatland |
MT RSA 7 (CMA 529); | | Fergus, Golden Valley, Musselshell, Petroleum, Stillwater, Sweet Grass |
MT RSA 8 (CMA 530); | | Beaverhead, Gallatin, Madison, Park |
MT RSA 9 (CMA 531); | | Big Horn, Carbon, Rosebud, Treasure |
MT RSA 10 (CMA 532); | | Carter, Custer, Fallon, Powder River, Prairie |
| | |
Nevada | | |
NV RSA 2 (CMA 544); | | Elko, Eureka, Lander |
NV RSA 5 (CMA 547); | | Lincoln, White Pine |
| | |
New Mexico | | |
Las Cruces NM MSA (CMA 285) | | Dona Ana |
NM RSA 1 (CMA 553); | | Cibola, McKinley, Rio Arriba, San Juan, Taos |
NM RSA 5 (CMA 557); | | Grant, Hidalgo, Luna |
NM RSA 6 (CMA 558); | | Chaves, Eddy, Lee, Lincoln, Otero |
| | |
| |
North Carolina | | |
Hickory NC MSA (CMA 166); | | Alexander, Burke, Catawba |
NC RSA 2 (CMA 566); | | Avery, Caldwell, Mitchell, Watauga, Yancey |
NC RSA 5 (CMA 569); | | Anson, Montgomery, Richmond, Scotland |
| |
North Dakota | | |
Bismarck ND (CMA 298); | | Burleigh, Morton |
Fargo-Moorehead ND-MN MSA (CMA 221); | | Clay, Cass |
| | |
Grand Forks ND-MN MSA (CMA 276); | | Polk, Grand Forks |
ND RSA 1 (CMA 580); | | Burke, Divide, McLean, Mountrail, Renville, Ward, Williams |
ND RSA 2 (CMA 581); | | Benson, Bottineau, Cavalier, McHenry, Pierce, Ramsey, Rolette, Towner |
ND RSA 3 (CMA 582); | | Barnes, Dickey, Griggs, LaMoure, Nelson, Pembina, Ransom, Richland, Sargent, Steele, Traill, Walsh |
ND RSA 4 (CMA 583); | | Adams, Billings, Bowman, Dunn, Golden Valley, Grant, Hettinger, McKenzie, Mercer, Oliver, Sioux, Slope, Stark |
ND RSA 5 (CMA 584); | | Eddy, Emmons, Foster, Kidder, Logan, McIntosh, Sheridan, Stutsman, Wells |
Ohio | | |
Lima OH MSA (CMA 158); | | Allen, Auglaize, Putnam, Van Wert |
Mansfield OH MSA (CMA 231); | | Richland |
OH RSA 2 (CMA 586); | | Erie, Huron, Sandusky, Seneca |
OH RSA 3 (CMA 587); | | Ashtabula |
OH RSA 5 (CMA 589); | | Crawford, Hancock, Hardin, Marion, Wyandot |
OH RSA 6 (CMA 590); | | Ashland, Coshocton, Holmes, Knox, Licking, Morrow, Wayne |
South Carolina | | |
Anderson SC MSA (CMA 227) | | Anderson |
SC RSA 1 (CMA 625); | | Oconee |
SC RSA 2 (CMA 626); | | Abbeville, Edgefield, Greenwood, Laurens, McCormick, Newberry, Saluda |
SC RSA 3 (CMA 627); | | Cherokee, Chester, Fairfield, Union |
SC RSA 7 (CMA 631); | | Allendale, Bamberg, Barnwell, Calhoun, Orangeburg |
South Dakota | | |
Rapid City SD MSA (CMA 289); | | Meade, Pennington |
Sioux Falls SD MSA (CMA 267); | | Minnehaha |
SD RSA 1 (CMA 634); | | Butte, Harding, Lawrence, Perkins |
SD RSA 2 (CMA 635); | | Campbell, Corson, Dewey, Potter, Walworth, Ziebach |
SD RSA 3 (CMA 636); | | Brown, Edmunds, Faulk, McPherson, Spink |
SD RSA 4 (CMA 637); | | Clark, Codington, Day, Deuel, Grant, Hamlin, Marshall, Roberts |
SD RSA 5 (CMA 638); | | Custer, Fall River, Shannon |
SD RSA 6 (CMA 639); | | Bennet, Gregory, Haakon, Jackson, Jones, Lyman, Mellette, Stanley, Todd, Tripp |
SD RSA 7 (CMA 640); | | Aurora, Brule, Buffalo, Charles Mix, Davison, Douglas, Hand, Hughes, Hyde, Jerauld, Sully |
SD RSA 8 (CMA 641); | | Beadle, Brookings, Kingsbury, Lake, Miner, Moody, Sanborn |
SD RSA 9 (CMA 642); | | Bon Homme, Clay, Hanson, Hutchinson, Lincoln, McCook, Turner, Union, Yankton |
Tennessee | | |
TN RSA 8 (CMA 650) | | Johnson |
| | |
Utah | | |
UT RSA 3 (CMA 675); | | Juab, Millard, Sanpete, Sevier |
UT RSA 4 (CMA 676); | | Beaver, Iron, Washington |
UT RSA 5 (CMA 677); | | Carbon, Daggett, Duchesne, Emery, Grand, Uintah |
UT RSA 6 (CMA 678); | | Garfield, Kane, Piute, San Juan, Wayne |
| |
Virginia | | |
Danville VA MSA (CMA 262); | | Pittsylvania, Danville City |
VA RSA 1 (CMA 681); | | Buchanan, Dickenson, Lee, Russell, Wise, Norton City |
VA RSA 8 (CMA 688); | | Amelia, Brunswick, Lunenberg, Mecklenburg, Nottoway |
| |
Wyoming | | |
Casper WY MSA (CMA 299); | | Natrona |
WY RSA 1 (CMA 718); | | Big Horn, Hot Springs, Park, Washakie |
WY RSA 2 (CMA 719); | | Campbell, Crook, Johnson, Sheridan, Weston |
WY RSA 4 (CMA 721); | | Albany, Goshen, Laramie, Niobrara, Platte |
WY RSA 5 (CMA 722); | | Converse |
| | |
| |
| Verizon Wireless Properties that will be sold |
Michigan | | |
MI RSA 5 (CMA 476) | | Benzie, Lake, Leelanau, Manistee, Mason, Missaukee, Osceola, Wexford |
MI RSA 7 (CMA 478) | | Gratiot, Isabella, Mecosta, Montcalm, Newaygo |
| | |
Minnesota | | |
MN RSA 7 (CMA 488); (see also Unicel) | | Chippewa, Kandiyohi, McLeod, Meeker, Nicollet, Renville, Sibley |
| | |
Nebraska | | |
NE RSA 5 (CMA 537). | | Boone, Butler, Colfax, Dodge, Merrick, Nance, Platte, Polk, Saunders, Washington |
| |
| Unicel (RCC) Properties that will be sold |
Kansas | | |
KS RSA 1 (CMA 428); | | Cheyenne, Decatur, Rawlins, Sheridan, Sherman, Thomas |
KS RSA 2 (CMA 429); | | Graham, Norton, Osborne, Phillips, Rooks, Smith |
KS RSA 6 (CMA 433); | | Gove, Greeley, Lane, Logan, Scott, Wallace, Wichita |
KS RSA 7 (CMA 434); | | Barton, Ellis, Ness, Pawnee, Rush, Russell, Trego |
KS RSA 11 (CMA 438); | | Finney, Grant, Hamilton, Haskell, Kearny, Morton, Seward, Stanton, Stevens |
| | |
KS RSA 12 (CMA 439); | | Clark, Ford, Gray, Hodgeman, Meade |
KS RSA 13 (CMA 440) | | Barber, Comanche, Edwards, Kiowa, Pratt, Stafford |
Minnesota | | |
MN RSA 7 (CMA 488) (see also VzW) | | Chippewa, Kandiyohi, McLeod, Meeker, Nicollet, Renville, Sibley |
MN RSA 8 (CMA 489) | | Lac qui Parle, Lincoln, Lyon, Redwood, Yellow Medicine |
MN RSA 9 (CMA 490) | | Brown, Cottonwood, Jackson, Martin, Murray, Nobles, Pipestone, Rock, Watonwan |
MN RSA 10 (CMA 491) | | Blue Earth, Faribault, Freeborn, Le Sueur, Rice, Steele, Waseca |
