Birch Communications, Inc. completed the acquisition of substantially all assets of Lightyear Network Solutions, Inc..
Also in connection with the agreement, Lightyear Network and Birch Communications entered into an amendment to the terms of a note receivable with a principal amount of $1.2 million. They have agreed that any distribution otherwise payable to Lightyear Network as a shareholder would be set off on a dollar for dollar basis against Lightyear Network's obligations under the term note. The deal is subject to approval of Lightyear Network's shareholders, execution on non solicitation agreement, customary regulatory approvals and other closing conditions. The Special Committee and Board of Directors of Lightyear Network have unanimously approved the transaction. Lightyear Network Solutions will use net proceeds from the transaction to fund repayment of outstanding secured indebtedness including a promissory note outstanding to a Lightyear's Director. Lightyear Network's stockholders approved the transaction on July 26, 2013.
Robert Sartin of Frost Brown Todd acted as legal advisor to Lightyear Network Solutions, Inc. U.S. Bank N.A. acted as escrow agent in the transaction. Vik Grover of Source Capital Group, Inc. acted as financial advisor for Birch. William Rowland of Jones Day acted as legal advisor for Birch.
Birch Communications, Inc. completed the acquisition of substantially all assets of Lightyear Network Solutions, Inc. (OTCPK:LYNS) on September 27, 2013.