* To pay $23/shr in cash and stock
* Deal offers 47.5 pct premium
* Deal to add to Consolidated's digital TV, broadband
Feb 6 Rural telephone services provider
Consolidated Communications Holdings Inc said it will
buy SureWest Communications for about $341 million in
cash and stock, to expand its digital TV and broadband services.
Consolidated will pay $23 per share, a premium of 47.5
percent to SureWest's Friday close of $15.59 on the Nasdaq, and
will incur $20 million to $25 million in related merger costs.
The companies said 50 percent of the SureWest shares will be
exchanged for cash and the rest for stock.
The transaction will add to Consolidated's free cash flow in
the first year after the transaction closes, excluding
integration costs, it said.
Consolidate received $350 million in financing from Morgan
Stanley Senior Funding Inc to pay for the cash portion of the
deal and to refinance SureWest's debt.