Ntelos To Shut Down Operations In Eastern Market, Reiterates Earnings Guidance

(RTTNews) - Ntelos Holdings Corp. (NTLS) Tuesday said its board decided to wind down operations in the eastern markets of virginia, to exclusively focus on west virginia. It also maintained its outlook earnings in 2014.

The closing date for eastern market business, which covers Hampton Roads/Norfolk and Richmond, is scheduled for November 15, 2015. The company said it will be providing its services until that date.

The closing down is expected to include transition of its subscribers to another carrier, the company said in a news release. It expects to incur costs of around $55 million to complete the wind down process. Ntelos said that it intends to explore potential sale of additional eastern market assets prior to the wind down.

Ntelos further said that it agreed to sell its eastern market 1900 MHz PCS spectrum licenses to T-Mobile for about $56 million in cash.

Looking ahead, the company continues to expect adjusted EBITDA of $128 million - $132 million for the year 2014.

For 2015, Ntelos expects adjusted EBITDA of $100 million - $108 million.