Cavalier gets financing commitments from Wachovia for Talk America purchase

By Sara Rosenberg

New York, Sept. 25 - Cavalier Telephone & TV has received commitment letters from Wachovia Bank to finance its acquisition of Talk America, Inc., according to a company news release.

Under the purchase agreement, Cavalier has offered $8.10 cash per share for all outstanding shares of Talk America, resulting in a $251 million purchase price.

On a pro forma basis, the combined companies are projecting over $750 million in revenue, $130 million in adjusted EBITDA and $50 million in free cash flow in 2006.

The deal, expected to close in December, is subject to Talk America shareholder and regulatory approval.

Cavalier is a Richmond, Va., local telephone company. Talk America is a Reston, Va., communications provider that offers phone services and high-speed internet access.

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