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 Grosvenor Capital Management, L.P. (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. Hunton Andrews Kurth LLP acted as legal advisor to Shenandoah. Bank Street Group acted as financial advisor to Horizon.

Baker Botts L.L.P. acted as legal advisor to Horizon. Houlihan Lokey acted as financial advisor to Grosvenor Capital. Greenberg Traurig, LLP acted as legal advisor to Grosvenor Capital.