Exhibit 99.1
Citizens Communications
3 High Ridge Park
Stamford, CT 06905
203.614.5600
Web site: www.czn.net
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FOR IMMEDIATE RELEASE
Contact:
Michael Bromley
Investor Relations
203-614-5218
mbromley@czn.com
Citizens Communications To Sell Electric Lightwave
Stamford, Conn., February 7, 2006 -- Citizens Communications (NYSE:CZN) today
announced that it has entered into a definitive agreement to sell its subsidiary
Electric Lightwave ("ELI") to Integra Telecom Holdings, Inc. The total proceeds
from the sale are $247 million including $243 million in cash plus the
assumption of $4 million in capital leases, subject to customary adjustments.
The sale is expected to close during the third quarter of 2006 and is subject to
regulatory and other customary approvals as well as the funding of Integra's
fully committed financing. The price will result in a book pre-tax gain on sale
of approximately $130 million.
ELI is a facilities-based integrated provider of internet, data, voice and
dedicated access services to businesses and other carriers in the western United
States. Cities and surrounding areas served by ELI are: Boise, Idaho; Portland,
Oregon, Salt Lake City, Utah; Seattle, Washington; Spokane, Washington; Phoenix,
Arizona; and Sacramento, California.
The expected use of net cash proceeds is for general corporate purposes.
Integra is a facilities-based integrated communications provider that primarily
serves small and mid-sized companies located in the business centers of
Minnesota, North Dakota, Oregon, Utah and Washington. Integra expects to close
2005 with $155 million in revenue and 280,000 lines in service. Integra is a
private company whose primary shareholders are Boston Ventures, Bank of America
Capital and Nautic Partners. Integra's financing commitments are being provided
by Goldman Sachs Specialty Lending Group and CIBC World Markets Corp. The
company is headquartered in Portland, Oregon.
About Citizens Communications
More information about Citizens can be found at www.czn.net.
This document contains forward-looking statements that are subject to risks and
uncertainties that could cause actual results to differ materially from those
expressed or implied in the statements. These and all forward-looking statements
(including oral representations) are only predictions or statements of current
plans that are constantly under review by the company. All forward-looking
statements may differ from actual results. The foregoing information should be
read in conjunction with the company's filings with the U.S. Securities and
Exchange Commission including, but not limited to, reports on Forms 10-K and
10-Q. The company does not intend to update or revise these forward-looking
statements to reflect the occurrence of future events or circumstances.
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