LITTLE ROCK, Ark., July 17 /PRNewswire-FirstCall/ -- Windstream
Corporation (NYSE: WIN) today announced its formation as a public company
with the completion of the spinoff of Alltel Corporation's landline
business and merger with VALOR Communications Group, Inc., creating the
largest telecommunications and entertainment services company focused on
serving rural America. Windstream common stock begins trading tomorrow,
July 18, 2006, on the New York Stock Exchange under the symbol WIN. The
company will be a member of the S&P 500 index and expects to pay a regular
quarterly dividend of $0.25 per share.
(Logo: http://www.newscom.com/cgi-bin/prnh/20060717/DAM022LOGO )
"Our new company has a great deal of momentum as we begin operating,"
said Jeff Gardner, president and CEO of Windstream. "We have assembled an
experienced leadership team backed by a talented workforce deeply rooted in
our local communities, and we will be focused on generating solid financial
results for shareholders."
Under the terms of the previously announced transaction, Alltel
shareholders are entitled to receive 1.0339267 shares of VALOR stock for
each share of Alltel they own. VALOR Communications, which has been renamed
Windstream Corporation, issued approximately 403 million shares of common
stock pro rata to the shareholders of Alltel, who will continue to own 1
share of the remaining wireless entity. Any Alltel shareholder entitled to
receive a fractional share will instead receive a cash payment.
Windstream has 8,000 employees and offers voice, broadband and digital
TV services in 16 states. The company has 55 retail stores and operates a
directory publishing and communications product supply business. Windstream
broadband service is expected to be available to approximately 80 percent
of the company's customers by the end of the year. Windstream broadband
service features speeds of up to 6.0 Mb.
Windstream has launched a multi-faceted brand campaign -- featuring
newspaper, radio, TV, outdoor, online and direct mail advertising -- to
introduce the company.
The central component of the campaign -- developed by The Concept Farm
of New York, Windstream's advertising agency -- is a green vintage pickup
truck. The truck is a recognizable classic that has been fully restored and
features the latest technology.
"The Windstream green truck will serve as a memorable brand icon that
evokes the spirit of our new company," Gardner said. "We have a proud
heritage through our legacy companies of providing quality products and
dependable services for our customers' safety and security and are now
uniquely positioned to offer bundled, innovative communications and
entertainment services at a great value to customers."
A multi-state mobile truck tour will start in August and travel
throughout Windstream's markets. An online showroom with the truck is
available on the company's new Web site at http://www.windstream.com .
Windstream Corporation (NYSE: WIN) provides voice, broadband and
entertainment services to customers in 16 states. The company has
approximately 3.4 million access lines and about $3.4 billion in annual
revenues. For more information, visit http://www.windstream.com .
Windstream claims the protection of the safe-harbor for forward-looking
statements contained in the Private Securities Litigation Reform Act of
1995. Forward-looking statements, including (without limitation) statements
about future dividends and broadband availability, are subject to
uncertainties that could cause actual future events and results to differ
materially from those expressed in the forward-looking statements. These
forward-looking statements are based on estimates, projections, beliefs,
and assumptions and are not guarantees of future events and results. Actual
future events and results may differ materially from those expressed in
these forward-looking statements as a result of a number of important
factors. Representative examples of these factors include (without
limitation) adverse changes in economic conditions in the regions in which
Windstream operates; the extent, timing and overall effects of competition
in the communications business; material changes in the communications
industry generally that could adversely affect vendor relationships with
equipment and network suppliers and customer relationships with wholesale
customers; changes in communications technology; the risks associated with
the integration of acquired businesses; the potential for adverse changes
in the ratings given to Windstream's debt securities by nationally
accredited ratings organizations; the availability and cost of financing in
the corporate debt markets; the uncertainties related to Windstream's
strategic investments; the effects of work stoppages; the effects of
litigation; potential outcome of income tax audits; the effects of federal
and state legislation, rules and regulations governing the communications
industry; and product liability and other claims asserted against
Windstream. In addition to these factors, actual future performance,
outcomes, and results may differ materially because of other, more general,
factors including (without limitation) general industry and market
conditions and growth rates, economic conditions, and governmental and
public policy changes.
David Avery, 501-748-5876
Investor Relations Contact:
Mary Michaels, 501-748-7578
SOURCE Windstream Corporation