Current Report Filing (8-k)
01 June 2021 - 9:01PM
Edgar (US Regulatory)
0000354963
false
0000354963
2021-05-28
2021-05-28
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xbrli:shares
iso4217:USD
xbrli:shares
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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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 28, 2021
Shenandoah
Telecommunications Company
(Exact name of registrant as specified in its charter)
Virginia
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0-9881
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54-1162807
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(State or Other Jurisdiction of Incorporation)
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(Commission File Number)
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(I.R.S. Employer Identification No.)
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500 Shentel Way,
Edinburg, Virginia 22824
(Address of Principal Executive Offices) (Zip Code)
Registrant’s telephone number, including area code: (540) 984-4141
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy
the filing obligation of the registrant under any of the following provisions:
☐
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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☐
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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☐
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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☐
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Securities registered pursuant to Section 12(b) of the Act:
Title of each class
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Trading Symbol(s)
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Name of each exchange on which registered
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Common Stock (No Par Value)
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SHEN
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NASDAQ Global Select Market
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule
405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2
of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use
the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a)
of the Exchange Act. ☐
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ITEM 1.01.
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Entry into a Material Definitive Agreement.
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On May 28, 2021, Shenandoah Telecommunications Company ( “Shentel” or “Seller”)
and T-Mobile USA, Inc. (“T-Mobile” or “Buyer”) entered into an Asset Purchase Agreement (the “Agreement”)
pursuant to the purchase option previously exercised by T-Mobile on August 26, 2020 and the completion of the appraisal process previously
disclosed on February 2, 2021. Under the Agreement, T-Mobile will purchase from Shentel the specified operating assets and related rights
(as defined in the Agreement) of Shentel’s Wireless Business (as defined in the Agreement) that were utilized to provide wireless
telecommunications network services as contemplated by the Sprint PCS Management Agreement, as amended (the “Management Agreement”),
in the Wireless Network Coverage Area (the geographic service area as defined in the Management Agreement) utilizing the Sprint Marks,
among other things and subject to the satisfaction or waiver of specified conditions (the “Transaction”). As previously disclosed,
the aggregate consideration payable by Buyer under the Agreement will be $1.95 billion in cash including approximately $60 million in
settlement of the waived management fee which is subject to adjustment based on the closing date. Consummation of the Transaction is currently
expected to occur in early third quarter of 2021, subject to customary conditions to closing including the receipt of certain regulatory
approvals.
Shentel has agreed that for a period of three (3) years following the closing of the Transaction,
Shentel and its subsidiaries will not directly or indirectly engage in any competing mobile wireless business within the Wireless Network
Coverage Area, among other things specified in the Agreement.
In connection with the Agreement, Shentel will enter into a Transition Services Agreement governing
Shentel’s provision of certain services to Buyer for a specified period of time after consummation of the Transaction, including
services relating to wireless network maintenance and certain back-office and administrative support in exchange for payment of certain
agreed-upon amounts by Buyer.
The foregoing description of the Agreement does not purport to be complete and is subject to,
and qualified in its entirety by reference to, the full text of the Agreement attached hereto as Exhibit 2.1, which is incorporated herein
by reference
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ITEM 9.01.
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Financial Statements and Exhibits
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(d) Exhibits.
Forward Looking Statements
This Current Report on Form 8-K contains forward-looking statements
about Shentel regarding, among other things, its plans to consummate the Transaction and its business strategy. These statements can be
identified by the use of forward-looking terminology such as "believes," "estimates," "expects," "intends," "may," "will," "should," "could,"
or "anticipates" or the negative or other variation of these or similar words, or by discussions of strategy or risks and uncertainties.
The forward-looking statements are based upon management's beliefs, assumptions and current expectations and may include comments as to
Shentel's beliefs and expectations as to future events and trends affecting its business that are necessarily subject to uncertainties,
many of which are outside Shentel's control. Although management believes that the expectations reflected in the forward-looking statements
are reasonable, forward-looking statements, including with respect to Shentel's and T-Mobile’s ability to consummate the Transaction
and Shentel’s financial outlook, are not, and should not be relied upon as, a guarantee of future performance or results, nor will
they necessarily prove to be accurate indications of the times at which such performance or results will be achieved, and actual results
may differ materially from those contained in or implied by the forward-looking statements as a result of various factors. A discussion
of other factors that may cause actual results to differ from management's projections, forecasts, estimates and expectations is available
in Shentel's filings with the Securities and Exchange Commission. Those factors may include natural disasters, pandemics and outbreaks
of contagious diseases and other adverse public health developments, such as COVID-19, changes in general economic conditions, increases
in costs, changes in regulation and other competitive factors. The forward-looking statements included are made only as of the date of
the statement. Shentel undertakes no obligation to revise or update such statements to reflect current events or circumstances after the
date hereof, or to reflect the occurrence of unanticipated events, except as required by law.
SIGNATURES
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.
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SHENANDOAH TELECOMMUNICATIONS COMPANY
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Date: June 1, 2021
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By:
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/s/ James J. Volk
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Senior Vice President – Chief Financial Officer
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(Principal Financial Officer)
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