Moody's: Consolidated Communications' (CNSL) Merger is Credit-Positive Event

Moody's Investors Service said that Consolidated Communications Holdings, Inc. (Nasdaq: CNSL) announcement yesterday that it plans to merge with Enventis Corporation ("Enventis") in an all-stock transaction valued at $350 million, including $123 million of Enventis' net debt as of 3/31/2014 does not impact its B1 corporate family rating or stable outlook. Moody's considers the merger with Enventis to be credit positive for Consolidated due to the modest improvement in leverage. However the all-stock deal will increase Consolidated's already high common dividend and result in a slight deterioration in free cash flow until merger synergies are realized. For further information please see the issuer comment posted to www.moodys.com.

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