SUBSEQUENT EVENTS

3 Months Ended

Sep. 30, 2018

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS

(16) SUBSEQUENT EVENTS

Share Repurchases and Revolving Credit Facility Borrowings

Under the Company’s outstanding share repurchase authorization (see Note 8  –Equity), the Company repurchased 12,966,527 shares of its outstanding common stock from October 1, 2018 through November 6, 2018 at an average price of $31.02, or $402.3 million, which results in $4.0 million remaining under the $500 million share repurchase authorization. The share repurchases were partially funded by an aggregate amount of $200.0  million of borrowings under the Revolver during October and November resulting in $241.9 million in availability under the  Revolver. See Note 6 –Long-term debtfor information on the Revolver.

Announcement of Plans to Separate into Two Public Companies

On November 7, 2018, the Company announced its plans to separate into two public companies, one focused on communications infrastructure (“InfraCo”) and one on enterprise services (“EnterpriseCo”). InfraCo will be comprised of the current Fiber Solutions and zColo business segments, along with the Wavelength and IP Transit businesses of the  current Transport segment.  EnterpriseCo will be comprised of the current Enterprise Networks and Allstream segments, along with the SONET and Ethernet businesses of the current Transport segment.  The transaction is expected to be consummated via a pro rata taxable spin-off of EnterpriseCo and is expected to be completed in late 2019.  Consummation of the transaction is subject to regulatory approval and approval by the Company’s Board of Directors.