EXHIBIT 99
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[McLEODUSA INCORPORATED LOGO]
McLeodUSA Incorporated
6400 C Street SW
PO Box 3177
Cedar Rapids, IA 52406-3177
Press & Investor Contact: Bryce Nemitz
Phone: (319) 298-7800
FAX: (319) 298-7767
http://www.mcleodusa.com
FOR IMMEDIATE RELEASE
McLeodUSA/Consolidated Communications Merger Completed Creating
First Super Regional CLEC
CEDAR RAPIDS, IA AND MATTOON, IL - SEPTEMBER 24, 1997 - In a
transaction combining the capabilities of two fast-growing Midwestern
telecommunications firms, McLeodUSA Incorporated (Nasdaq NMS:MCLD) and
Consolidated Communications Inc. (CCI), have completed their previously
announced merger. Effective at 5:00 pm CDT today, the combined company will be
known as McLeodUSA Incorporated and will continue to focus on providing
integrated telecommunications services to business and residential customers in
the upper Midwest.
The former owners of CCI, a privately held company, will receive $155
million in cash and 8.49 million shares of McLeodUSA Class A Common Stock. The
stock value is $24.50 per share, the closing price on June 13, the final trading
day prior to the planned merger announcement. McLeodUSA will assume
approximately $60 million in long-term debt of CCI, bringing the total value of
the transaction to $420 million. Based on the annualized results of the quarter
ended June 30, 1997, the new company would have revenues of approximately $440
million and positive EBITDA of $6 million.
"We celebrate the completion of this transaction with Consolidated
Communications," said Clark McLeod, Chairman and CEO of McLeodUSA Incorporated.
"The combined management team is highly energized about being
the first Super Regional Competitive Local Exchange Carrier, creating a 14-state
facilities-oriented telecommunications provider with 6 switches, and more than
207,000 local lines, 4,500 employees, 3,900 route miles of fiber optics network,
and publishing 12 million competitive phone directories a year. The parallel
strategic direction and common set of values shared by both companies promises
to create an exponentially more powerful company."
Dick Lumpkin, now Vice Chairman of McLeodUSA Incorporated, stated
"Speaking on behalf of the former CCI contingent of employees, we are excited
about this event. Today's merger will create growth opportunities that simply
would not have been possible as a private company, and our employees recognize
that fact. This is certainly the boldest move in the history of our 104-year
old company, and it is also the most exciting." Two subsidiaries of the former
CCI will retain their current names: Illinois Consolidated Telephone Company,
the independent local exchange carrier serving rural Central Illinois; and
Consolidated Communications Directories, a publisher of telephone directories in
39 states and the Virgin Islands.
As announced in June the McLeodUSA executive management team will
include:
. Clark McLeod, Chairman and CEO,
. Dick Lumpkin, Vice Chairman,
. Steve Gray, President and COO,
. Blake Fisher, Chief Financial and Administrative Officer
. Bob Currey, President of the Telecommunications subsidiary, and
. Art Christoffersen, President of the Publishing subsidiaries.
Dick Lumpkin and Bob Currey join the McLeodUSA Board of Directors.
Steve Gray, President and COO commented, "When we announced our
intention to merge just over three months ago, we noted the similarities in our
values and strategy. As we have combined and focused both organizations at all
levels, we have been delighted by the degree to which these similarities have
been confirmed. Both companies are growth-oriented, competitive and possess a
well-seasoned, energetic work force. We are confident that as 4,500 employees
move toward a set of common objectives and a nearly unlimited market
opportunity, we will create a truly powerful Midwestern presence in this
industry."