<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) May 10, 1999
-------------------------------
IXC Communications, Inc.
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 0-20803 74-2644120
- --------------------------------------------------------------------------------
(State or other (Commission (I.R.S. Employer
jurisdiction File Number) Identification No.)
of incorporation)
1122 Capital of Texas Highway South, Austin, Texas 78746
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (512) 328-1112
----------------------------
Not applicable
- --------------------------------------------------------------------------------
(Former name or former address, if changed since last report.)
<PAGE> 2
ITEM 5. OTHER EVENTS.
On May 10, 1999, IXC Communications, Inc. completed its acquisition of
all of the membership interests in the limited liability companies which operate
as the Coastal Telephone Company.
Attached as Exhibit 99.1 is the press release issued by IXC dated
May 10, 1999 which is incorporated by reference herein.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) EXHIBITS
99.1 Press release dated May 10, 1999
2.
<PAGE> 3
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Date: May 17, 1999
IXC Communications, Inc.
By: /s/ Jeffrey C. Smith
------------------------------
Jeffrey C. Smith,
Senior Vice President, General
Counsel and Secretary
3.
<PAGE> 4
EXHIBIT INDEX
Exhibit
Number Description
- ------ -----------
99.1 Press release dated May 10, 1999
4.
<PAGE> 1
EXHIBIT 99.1
[IXC LOGO] NEWS RELEASE
- --------------------------------------------------------------------------------
IXC AUGMENTS RETAIL BUSINESS WITH COMPLETED
ACQUISITION OF COASTAL TELEPHONE
Combined synergies will increase sales to small and mid-sized businesses through
high margin solutions to growing market for new data and Internet services
AUSTIN, TX - May 10, 1999 - IXC Communications, Inc. (Nasdaq: IIXC) today
announced the expansion of its business-to-business division, Eclipse
Telecommunications, with the completed acquisition of Coastal Telephone Company.
Originally announced in January, the transaction is valued at approximately $100
million.
The acquisition, made under the purchase method of accounting, allows IXC to
sell its broader product line to Coastal's base of more than 100,000 small
business customers. In addition, the acquisition complements and leverages each
sales force's key strength -- Eclipse's direct sales force in the middle market
for business customers and Coastal's inside sales team in the small business
arena.
A privately held long distance reseller based in Houston, Coastal has annualized
revenues approaching $90 million and positive EBITDA (Earnings Before Interest,
Taxes, Depreciation and Amortization).
"We are implementing IXC's strategy to better serve the burgeoning small and
medium-sized business markets," said Benjamin L. Scott, IXC's chairman and CEO.
"In the process, the margins on Coastal's current traffic will improve by
utilizing IXC's extensive fiber optic network, and Eclipse overall will see a
lower cost per sale with a more efficient sales model."
Wholly owned by IXC, Eclipse offers a full range of voice, data, and Internet
services through 20 sales and branch locations around the country. It offers a
unique suite of advanced products and services such as integrated access;
flexible, customized billing to support business needs; simple,
easy-to-understand pricing and contracts; and the quality and reliability of
IXC's state-of-the-art fiber network. More information about Eclipse is
available at www.eclipsetel.com.
IXC's network-based delivery solutions are designed to address the speed and
capacity requirements of the global communications market. IXC offerings include
private line, fast packet (ATM and frame relay), Internet and long distance
switched and dedicated services. IXC Communications Inc. is at the forefront of
the industry's new class of emerging domestic and international carriers that
include Qwest and Level 3. IXC is a publicly traded company listed on Nasdaq
under the symbol IIXC. For more information, visit IXC's Web site at
www.ixc-comm.com.
- more -
<PAGE> 2
Certain of the above statements set forth management's expectations or
predictions of the future based on current facts and analyses. Actual results
may differ materially from those indicated in such statements due to unavoidable
construction delays, increases in expenses, and other factors. Additional
information on factors that may affect the business and financial results of IXC
can be found in IXC's filing with the Securities and Exchange Commission.
# # #
Media Contact: Investor Contact:
Melissa Jackson Greta Wiechman
Senior Manager, Public Relations Director, Investor Relations
(512) 231-5247 (888) 267-9478
[email protected] [email protected]
Gerard Sandoval
Account Manager
Copithorne & Bellows
(770) 392-8629
[email protected]
