Court Square Capital And Conterra Management Team Complete Majority Equity Investment In Conterra Broadband

CHARLOTTE, N.C., July 2, 2014 /PRNewswire/ -- Court Square Capital Partners, a leading private equity firm, announced today the closing of transactions resulting in the acquisition of a controlling interest in Conterra Ultra Broadband Holding, LLC from affiliates of Goldman Sachs, Duke Energy, GE Capital and the Circumference Group. The equity transaction, which includes substantial participation by Conterra's senior management team, was finalized July 1, 2014.

"This transaction memorializes an extremely successful first 10 years of Conterra's operating history during which we have designed, deployed and operate more than 20,000 miles of high- capacity broadband networks largely in underserved communities throughout 23 states," commented Conterra's Chief Executive Officer, Steve Leeolou.  "Achieving exceptional and sustained growth rates through some of the most tumultuous economic times in modern history is a tribute to the robustness of our industry and dedication of our employees," added Mr. Leeolou.

The ownership buyout was financed through a combination of equity contributed by a Court Square investment fund, Conterra's management team and existing non-institutional shareholders as well a new senior credit facility led by Toronto Dominion Bank, GE Capital, CoBank, ING Capital and Bank of America.  This facility also provides additional capacity to fund the ongoing expansion of the company's bandwidth infrastructure business.

"As we enter our second decade of operations, we look forward enthusiastically to our next phase of growth and continuing to provide world-class bandwidth services to our existing and new customers," noted Mr. Leeolou, who continued: "We are eager to benefit from Court Square's many years of successful financial and operating experience in the optical fiber and general telecom space.  At the same time, we are extremely grateful for the enlightened support over the years provided by our exiting institutional shareholders—Goldman Sachs, Duke Energy, GE Capital and the Circumference Group—and their individual representatives on our board."

The Bank Street Group LLC served as Conterra's exclusive financial advisor in connection with this transaction.  Nelson Mullins Riley & Scarborough LLP served as legal counsel to Conterra in connection with this transaction.  Dechert LLP provided legal counsel to Court Square in connection with this transaction.

About Conterra

Conterra is a nationwide provider of bandwidth infrastructure services, specializing in the design, deployment and operation of customized broadband networks, largely in underserved areas.

During the last decade the company has connected thousands of customer sites in 23 states, bringing high-capacity middle and last-mile broadband services primarily to the wireless, education and healthcare industries. As a result, today Conterra is among the largest and most experienced suburban and rural broadband services providers in the US. For more information about Conterra please visit www.conterra.com.

About Court Square Capital Partners

Court Square is one of the most experienced teams in the private equity industry. Since 1979, the team has made over 200 investments including several landmark transactions and has developed numerous businesses into leaders in their respective markets. Based in New York, NY, Court Square invests in companies that have compelling growth potential. The firm manages over $6 billion in aggregate capital commitments while focusing on the following four sectors: business services, general industrial, healthcare and technology/telecommunications. For more information on Court Square please visit www.courtsquare.com. 

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SOURCE Conterra