Exhibit 99.1
COMPANY LOGO
Citizens Communications
3 High Ridge Park
Stamford, CT 06905
203.614.5600
Web site: www.czn.net
FOR IMMEDIATE RELEASE
Contacts:
Financial Community: Media:
Alan H. Oshiki, Assistant Vice President Brigid M. Smith, Assistant Vice
Investor Relations President Corporate Communications
(203) 614-5629 (203) 614-5042
[email protected] [email protected]
Citizens Communications Enters Into Agreement to Acquire 1.1 Million
Telephone Access Lines From Global Crossing Ltd.
STAMFORD, Conn., July 12, 2000 - Citizens Communications (NYSE:CZN) announced
today that it has entered into a definitive agreement to acquire Frontier's 1.1
million telephone access lines from Global Crossing Ltd. (NASDAQ:GBLX) for $3.65
billion in cash. Citizens and Global Crossing also entered into a strategic
agreement under which Global Crossing will provide long distance services.
"This transaction takes Citizens another step closer to our goal to grow our
service platform to 5 million access lines," said Leonard Tow, Citizens'
chairman and chief executive officer. "These properties are an excellent
complement to our existing businesses. Over 80% of the lines we are acquiring
will add critical mass to our operating clusters in New York state and the
Midwest, and will provide us with the economies of scale necessary for our drive
toward significant EBITDA margin improvement. Along with acquisition agreements
made in 1999 with GTE and US WEST, the Frontier acquisition will bring the
number of access lines Citizens will serve to over 3 million."
A new $3.5 billion bank credit line has been arranged to fund this transaction.
The transaction is subject to various state and federal regulatory approvals and
is expected to be completed in the second half of 2001.
Citizens Communications provides telecommunications services to more than 1
million customers in 14 states. In 1999, Citizens agreed to purchase
approximately 1 million additional access lines in 11 states. The first of these
transactions, in Nebraska, closed on June 30; the remainder will continue to
close throughout the next 12 months. Citizens also owns 82% of Electric
Lightwave, Inc. (NASDAQ:ELIX), a facilities-based, integrated communications
provider that offers a broad range of services to telecommunications-intensive
businesses throughout the United States. More information about Citizens can be
found at www.czn.net.
This document contains forward-looking statements that are subject to risks and
uncertainties that could cause actual results to differ materially from those
expressed or implied in the statements. These and all forward-looking statements
(including oral representations) are only predictions or statements of current
plans that are constantly under review by the company. All forward-looking
statements may differ from actual results because of, but not limited to,
changes in the local and overall economy, changes in market conditions for debt
and equity securities, the nature and pace of technological changes, the number
and effectiveness of competitors in the company's markets, success in overall
strategy, changes in legal or regulatory policy, changes in legislation, the
company's ability to identify future markets and successfully expand existing
ones, the mix of products and services offered in the company's target markets,
the effects of acquisitions and dispositions and the ability to effectively
integrate businesses acquired. These important factors should be considered in
evaluating any statement contained herein and/or made by the company or on its
behalf. The foregoing information should be read in conjunction with the
company's filings with the U.S. Securities and Exchange Commission including,
but not limited to, reports on Forms 10-K and 10-Q. The company does not intend
to update or revise these forward-looking statements to reflect the occurrence
of future events or circumstances.
