TWT CEO Calls for Policies to Promote Ethernet

October 8, 2007

Larissa Herda, Chairman, CEO and President of Time Warner Telecom (NASDAQ: TWTC) today advocated policies to promote Ethernet availability for American businesses before the House Subcommittee on Telecommunications and the Internet.

“Enterprise customers want the benefits of Ethernet,” Herda said. “They want the flexibility, simplicity and scalability that this technology provides in enabling them to converge their networks and achieve economies of scale and innovation. What DSL did for residential customers, Ethernet does for enterprises. Ethernet is broadband for businesses and with it, they become more efficient and competitive.”
Herda contends that businesses are denied these benefits because incumbents have no incentive to offer Ethernet as it cannibalizes their huge Frame Relay and ATM businesses.
“The only feasible means of increasing the benefits of Ethernet to businesses is for the FCC to prescribe lower wholesale Ethernet prices charged by the large monopoly incumbents so that competitors, like Time Warner Telecom, can offer these services to locations not reached by their networks,” Herda said.

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Telarus launches Ethernet lit buildings tool

August 8, 2007

Telarus today announced the launch of a new marketing web site that focuses on businesses looking for Ethernet over Copper (EoC), Ethernet over Serial (DS1), fast (100 mbps) and gigabit (1 gbps) Ethernet broadband availability: ShopforEthernet. The web site, powered by GeoQuote and Google maps, enables the general public to search for lit buildings where broadband carriers have a physical presence. The results are displayed on a dynamically generated map for easy viewing.

Ethernet lit building
“We are very excited about the launch of ShopforEthernet,” commented Adam Edwards, president of Telarus. “Giving the public visibility into the location of telecommunications equipment is a major advance in this industry, which has traditionally kept this information very close to the vest.”
Finding “lit” buildings where Ethernet broadband is available is very important to larger companies with high bandwidth requirements. By plugging in directly to a telecommunications carrier via Ethernet, customers avoid the expensive loop charges assessed by the local phone company.

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Time Warner Telecom Q1 2007

May 3, 2007

Time Warner Telecom Inc. (NASDAQ: TWTC), a leading provider of managed voice and data networking solutions for business customers, today announced its first quarter 2007 financial results, including $261.4 million of revenue, $76.3 million in Modified  (“M-EBITDA”) and a net loss of $13.8 million. Read the rest of this entry »


Time Warner Telecom Closes Xspedius Communications Acquisition

November 1, 2006

Time Warner Telecom Closes Xspedius Communications Acquisition

Acquisition expands metro fiber footprint to 75 markets —  Read the rest of this entry »


Time Warner Telecom wants Conditions to AT&T-BellSouth Merger

October 12, 2006

Time Warner Telecom called on the FCC to rigorously review the proposed AT&T – BellSouth merger and not approve such a merger, absent regulatory conditions that fully address the consequences of the merger for business customers. Read the rest of this entry »


Time Warner Telecom completes $700 million Senior Secured Credit Facility

October 6, 2006

Time Warner Telecom Inc.  announced that it has completed a new $700 million senior secured Credit Facility for its wholly-owned subsidiary, Time Warner Telecom Holdings Inc. consisting of a $600 million Term Loan B maturing in January 2013 and a $100 million Revolving Credit Facility maturing in October 2011.

Initial pricing on the Term Loan is at LIBOR plus 2.25 percent, and initial pricing on the Revolver, which is presently undrawn, is LIBOR plus 2.50 percent. The Credit Facility is guaranteed by the Company and its restricted subsidiaries. The Revolver replaces Holdings’ $110 million secured revolving credit facility. Read the rest of this entry »


Time Warner Telecom to Acquire Xspedius

July 28, 2006

xspedius_main_01.jpgTime Warner Telecom Inc. (NASDAQ: TWTC), a leading provider of managed voice and data networking solutions for business customers, today announced it signed a definitive agreement to acquire Xspedius Communications, LLC., a privately held company which provides telecommunications services to businesses across the U.S.

Under the terms of the agreement, Time Warner Telecom will pay total consideration of $531.5 million, consisting of $212.5 million in cash and $319 million in shares of Time Warner Telecom’s Class A Common Stock. The company will assume no debt in the acquisition.

Xspedius is a metro fiber-based provider of integrated communications services primarily to enterprise businesses as well as carrier customers. Xspedius provides a comprehensive suite of high quality services, including metro Ethernet, local and long distance voice, data and dedicated Internet access services, in 43 markets across 18 states and the District of Columbia.

“This acquisition significantly broadens the already extensive nature of our local assets and national capabilities,” said Larissa Herda, Chairman, CEO and President of Time Warner Telecom. “The marketplace continues to validate our long-held view of the value of last mile connectivity to enterprise customers. This strategic acquisition further expands our network reach and market density for serving multi-location and multi-city enterprise customers, increasing the number of markets we serve from 44 to 75, and enhances our ability to further fuel our enterprise growth.”

“For the full year 2007, we expect Xspedius’ stand alone operations to generate approximately $230 to $250 million of revenue, $40 to $50 million of Modified-EBITDA1 and $20 to $25 million in Unlevered Free Cash Flow2 before synergies and integration costs,” said Mark Peters, Time Warner Telecom’s Chief Financial Officer. “We expect to achieve significant annualized cost synergies of approximately $40 to $50 million within 12 to 18 months of closing, and expect $40 to $50 million in one-time investments to integrate the business. These integration costs include investments to interconnect our network assets in order to overlay our product portfolio to drive additional enterprise revenue growth.” Time
Warner Telecom expects to achieve the cost synergies by leveraging existing local and regional operating structures and optimizing network capabilities and costs.

The stock consideration is subject to a 20% symmetrical collar adjustment. This adjustment is based on the average share price of Time Warner Telecom’s Class A common shares for the 20 trading days prior to closing as compared to $14.57. The consideration will be adjusted for a stock price decrease in the form of additional cash and stock, or for a stock price increase by decreasing the stock consideration.

“We are looking forward to being an investor in Time Warner Telecom,” said Jim Lynch, representative of majority Xspedius owner, Thermo Capital Partners, and Chairman of Xspedius Communications. “Time Warner Telecom is clearly an innovative market leader. I am impressed with their ability to serve the enterprise customer with a broad range of services, their market success, and the scalability of their business model. This combination creates significant synergies and will enhance Time Warner Telecom’s overall growth rate.”
“The Xspedius team is enthusiastic about the opportunity to partner with Time Warner Telecom,” said Paul Pierron, President and CEO of Xspedius. “The enhancements this merger brings will provide our customers new and expanded service opportunities. The combination of these two companies solidifies Time Warner Telecom’s position as a leading national provider of network services to enterprise customers.”

Closing is expected within six months, and is subject to customary conditions, including the receipt of applicable federal and state regulatory approvals. The transaction has been approved by the required majority consent of equity holders of Xspedius Communications and does not require a Time Warner Telecom shareholder vote.

Evercore Partners acted as financial advisor to Time Warner Telecom, and Wachtell, Lipton, Rosen & Katz and Faegre & Benson acted as legal advisors. Brown Brothers Harriman acted as financial advisor to Xspedius Communications and Taft, Stettinius & Hollister acted as legal advisor.

Time Warner Telecom plans to conduct a webcast conference call on July 28, at 8:00 a.m. MDT (10:00 a.m. EDT). To access the webcast and the financial and statistical information to be discussed in the webcast, visit http://www.twtelecom.com under “Investor Relations.”
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