Shenandoah Telecommunications Company completed the acquisition of Horizon Telcom, Inc. from Novacap TMT V managed by Novacap Investments, Inc. and Labor Impact Fund, L.P. managed by GCM Grosvenor Inc..
April 31, 2024
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Shenandoah Telecommunications Company (NasdaqGS:SHEN) entered into a definitive agreement to acquire Horizon Telcom, Inc. from Novacap TMT V managed by Novacap Investments, Inc. and Labor Impact Fund, L.P. managed by GCM Grosvenor Inc. (NasdaqGM:GCMG) for approximately $390 million on October 24, 2023. Consideration will consist of $305 million in cash and $80 million of Shentel common stock. GCM Grosvenor will exchange its equity interest in Horizon for 4.08 million shares of Shentel common stock with an aggregate value of $80 million. Shentel intends to fund the transaction with a combination of existing cash resources, revolving credit facility capacity and an amended and upsized credit facility. The Company has received $275 million in financing commitments from CoBank, Bank of America, Citizens Bank, N.A., and Fifth Third Bank, N.A. As of October 24, 2023, Horizon Telcom reported the revenue of approximately $64.7 million, net loss of approximately $12 million and EBITDA of approximately $19 million for the period ended December 31, 2022. The Transaction is subject to certain regulatory approvals and other customary closing conditions and is expected to close in the first half of 2024.
Rothschild & Co acted as financial advisor to Shenandoah. Steven M. Haas and J.A. Glaccum of Hunton Andrews Kurth LLP acted as legal advisor to Shenandoah. Bank Street Group acted as financial advisor to Horizon. Neil Torpey of Baker Botts L.L.P. acted as legal advisor to Horizon. Houlihan Lokey acted as financial advisor to GCM Grosvenor. Kemal Hawa and Chris Turek of Greenberg Traurig, LLP acted as legal advisors to GCM Grosvenor.
Shenandoah Telecommunications Company (NasdaqGS:SHEN) completed the acquisition of Horizon Telcom, Inc. from Novacap TMT V managed by Novacap Investments, Inc. and Labor Impact Fund, L.P. managed by GCM Grosvenor Inc. (NasdaqGM:GCMG) on April 1, 2024. Glenn Lytle, Horizon head of Commercial Sales, will join the Shentel management team as Senior Vice President of Commercial Sales for the combined business. Shentel funded the cash portion of the acquisition with a combination of existing cash resources, proceeds from last week?s completed sale of its tower portfolio, and issuance of 7%3 Participating Exchangeable Perpetual Preferred Stock of a Shentel subsidiary to an affiliate of Energy Capital Partners.
GCM Grosvenor Inc. is an alternative asset management solutions provider. It invests on a primary basis and through direct-oriented strategies, which it defines as secondaries, co-investments, direct investments and seed investments. It operates customized separate accounts and commingled funds. It collaborates with its clients to invest on their behalf across the private and public markets, either through portfolios customized to meet a client's specific objectives or through specialized commingled funds that are developed to meet market demands for strategies and risk-return objectives. It operates through private markets and absolute return strategies. Private markets and absolute return strategies are primarily defined by the liquidity of the underlying securities purchased, the length of the client commitment, and the form and timing of incentive fees. Its investment strategies include Infrastructure, Real Estate, Alternative Credit, Sustainable and Impact Investing, and others.
Shenandoah Telecommunications Company completed the acquisition of Horizon Telcom, Inc. from Novacap TMT V managed by Novacap Investments, Inc. and Labor Impact Fund, L.P. managed by GCM Grosvenor Inc..
GCM GROSVENOR INC. 
