- Filing of certain prospectuses and communications in connection with business combination transactions (425)
10 Marzo 2010 - 3:57PM
Edgar (US Regulatory)
Filed by RCN Corporation pursuant to
Rule 425 of the Securities Act of 1933, as
amended, and deemed filed pursuant to
Rule 14a-12 of the Securities Exchange Act
of 1934, as amended
Subject Company: RCN Corporation
Commission File No.: 001-16805
ABRY PARTNERS, LLC TO ACQUIRE RCN CORPORATION
RCN Metro Sales: Answers to Frequently Asked Questions
Q.
Who is ABRY Partners, LLC?
A.
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Based in Boston, Massachusetts, ABRY Partners, LLC (ABRY) is one of the most experienced and successful media
and communications focused private equity investment firms in North America. Since 1989, ABRY Partners has
completed investments in more than 450 media and communications properties.
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Q.
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What are the benefits to RCN and its employees and customers from the transaction?
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A.
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RCN believes that ABRYs financial resources and expertise in the communications industry create significant
opportunities for RCN and its employees and customers.
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Q.
What is the transaction and what effect will it have on RCN?
A.
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Pursuant to the terms and subject to the conditions set forth in the merger agreement, an investment fund managed
by ABRY will acquire RCN pursuant to a series of transactions that will result in Yankee Cable Acquisition, LLC
(Cable Buyer) acquiring RCNs cable business and Yankee Metro Parent, Inc. (Metro Parent) acquiring RCNs
Metro Optical Networks business unit. Both Cable Buyer and Metro Parent will be owned indirectly by ABRY. RCN
will no longer be a publicly held corporation and its common stock will be delisted from the NASDAQ Stock Market
and deregistered under the Securities Exchange Act of 1934, as amended (the Securities Exchange Act).
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Q.
When do you expect the transaction to be completed?
A.
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RCN and ABRY are working toward completing the transaction as soon as possible. Assuming timely satisfaction of
the closing conditions, we anticipate that the transaction will be completed in the second half of 2010.
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Q.
How certain is the closing of the transaction?
A.
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The transaction is subject to approval by RCNs stockholders, the receipt of certain regulatory approvals and the
satisfaction of other customary conditions.
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Q.
What happens if the transaction is not completed?
A.
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If the transaction is not completed for any reason, RCN will remain an independent public company and its common
stock will continue to be listed and traded on the NASDAQ Stock Market and registered under the Securities
Exchange Act.
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Q.
What happens to the RCN Metro Employees?
A.
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Employees will remain with RCN until the closing of the transaction. Upon the closing of the transaction, RCNs
cable and Metro Optical Networks business units will be split, with each business unit becoming a wholly-owned
subsidiary of ABRY. The intent of the split is to allow each business unit to focus solely on serving its
respective customers and maximizing its potential. Additional information regarding these restructuring
transactions will be provided prior to the closing of the transaction.
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Q.
Will there be changes in management?
A.
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We anticipate that RCNs current management team will remain in place until the closing of the transaction. Due
to the anticipated restructuring of RCNs cable and Metro Optical Networks business units, we expect certain
changes in the companys organizational structure. For the significant majority of RCN employees, there will be
few changes, if any, in your day-to-day work experience at RCN.
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Q.
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Can I discuss the transaction with RCNs customers?
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A.
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Only authorized officers of RCN and ABRY should speak with customers regarding the specific terms of the
transaction. If a customer asks about the transaction, you may point them to the RCN and SEC websites so that
they can read the press release and obtain additional information about the transaction.
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Q.
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What are ABRYs plans for RCN Metro following the closing of the transaction?
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A.
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Upon the closing of the transaction, RCNs cable and Metro Optical Networks business units will be split, with
each business unit becoming a wholly-owned subsidiary of ABRY. The intent of the split is to allow each business
unit to focus solely on serving its respective customers and maximizing its potential. Additional information
regarding the transaction and ABRYs plans for RCN Metro following the closing of the transaction will be made
available at a later date.
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Q.
Where can I get more information about the transaction?
A.
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A press release describing the terms of the transaction is posted on RCNs website. You can also visit the RCN
and Securities and Exchange Commission websites to see RCNs SEC filings and obtain additional information about
the transaction.
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2
Q.
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If I get a question from a non-customer, such as an investor, the media, the financial community, or a government
representative, who should I refer them to?
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A.
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Any inquiries from investors, the media, the financial community, government representatives or other third
parties should be directed immediately to Richard Ramlall at 703-434-8407. Please do not try to answer questions.
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Important Notice
In connection with the proposed transaction, RCN will file a proxy statement and other materials with the Securities
and Exchange Commission. Investors and security holders are advised to read the proxy statement and these other
materials when they become available because they will contain important information about RCN and the proposed
transaction. Investors and security holders may obtain a free copy of the proxy statement (when available) and other
documents filed by RCN with the Securities and Exchange Commission at the SEC web site at www.sec.gov. Copies of the
proxy statement (when available) and other filings made by RCN with the SEC can also be obtained, free of charge, by
directing a request to RCN Corporation, 196 Van Buren Street, Herndon, VA 20170, Attention: Investor Relations. The
proxy statement (when available) and such other documents are also available for free on the RCN website at www.rcn.com
under About RCN/Investor Relations/SEC Filings.
RCN and its directors and officers and other persons may be deemed to be participants in the solicitation of proxies
from its stockholders in connection with the proposed acquisition transaction. Information concerning the interests of
directors and executive officers in the solicitation is set forth in the RCN proxy statements and Annual Reports on
Form 10-K, previously filed with the SEC, and in the proxy statement relating to the proposed transaction when it
becomes available.
RCN Forward-Looking Statements
This document contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of
1934, as amended. One can identify these forward-looking statements by the use of words such as expect, anticipate,
plan, may, will, estimate or other similar expressions. Because such statements apply to future events, they
are subject to risks and uncertainties that could cause the actual results to differ materially. Important factors,
which could cause actual results to differ materially, include (without limitation): the ability to obtain regulatory
approvals of the transactions contemplated by the acquisition agreement on the proposed terms and schedule; the failure
of RCNs stockholders to approve the transactions contemplated by the acquisition agreement; our ability to maintain
relationships with customers, employees or suppliers following the announcement of the transaction; the ability of
third parties to fulfill their obligations relating to the proposed transactions, including providing financing under
current financial market conditions; the ability of the parties to satisfy the conditions to closing of the
transactions contemplated by the acquisition agreement; and the risk that the transactions contemplated by the
acquisition agreement may not be completed in the time frame expected by the parties or at all. Additional information
on risk factors that may affect the business and financial results of RCN can be found in RCNs Annual Report on Form
10-K and in the filings of RCN made from time to time with the SEC. RCN undertakes no obligation to correct or update
any forward-looking statements, whether as a result of new information, future events or otherwise.
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