20230217Notice of Transfer of Indirect Control.pdf

Idaho Public Utilities Commission
Office of the SecretaryRECEIVED
FEB 1 7 2023COVINGTON Covington &Burling LLP
One CityCenterBEIJINGBRUSSELSDUBAIFRANKFURTJOHANNESBURG80ise,Idaho 850 Tenth Street,NWLONDONLOSANGELESNEWYORKPALOALToWashington,DC 20001-4956SANFRANCISCOSEOULSHANGHAIWASHINGTONT+12026626000
By OvernightMail February 14,2023
Jo Nelson
Secretary
Utilities Division
Idaho Public Utilities Commission
P.O Box 8372o
Boise,ID 83720-0074
Re:Notice of Transfer of Indirect Control of Spectrotelof theWest,LLC
Dear Ms.Nelson:
Spectrotel,Inc.("Spectrotel"or "Transferor")and Spectrotel Ultimate Holdings,LLC
("Spectrotel Ultimate"or "Transferee,"and,togetherwith Spectrotel,the "Parties"),herebynotifytheIdahoPublicUtilitiesCommission(the "Commission")of a transaction (the
"Transaction")that resulted in a change of the ultimate control of Spectrotel of the West,LLC
("Spectrotel of the West"or "Licensee").Pursuant to Idaho Code §62-704,the PartiesunderstandthatnoCommissionactionwasrequiredfortheTransaction.Accordingly,the
Parties provide this notice for informational purposes.
In furtheranceof this notice,the Parties provide the following information:
I.THE PARTIES
A.Spectrotel,Inc.and Spectrotelof the West,LLC
Transferor Spectrotel,Inc.is a Delaware corporation that maintains its headquarters at
3535 Route 66,Suite 7,Neptune,New Jersey 07753.Licensee Spectrotel of the West,LLC,a
Delaware limited liability company and an indirect,majorityowned subsidiary of Spectrotel,
maintains its headquarters at the same address.Spectrotel provides,including through
Spectrotel of the West and various other subsidiaries,resold voice and IP-based data services tosmallandmedium-sized businesses and enterprise customers across the United States.
Spectrotel of the West holds a Certificate of Public Convenience and Necessity ("CPCN")to
February 14,2023
Page 2
provide facilities-based and resold local exchange services in Idaho pursuant to Order No.
32602,issued July30,2012 in Case No.SPE-T-11-01.1
B.SpectrotelUltimate Holdings,LLC
Transferee Spectrotel Ultimate Holdings,LLC is a limited liability company organizedunderthelawsofthestateofDelawarethatmaintainsitsheadquartersat19ooKStreetNW,
Suite 650,Washington,DC 2ooo6.Spectrotel Ultimate is managed by Grain Management,LLC("Grain Management"),which invests in and manages communications businesses in North
America and South America.Grain Management's private equity funds focus on investing in
communications infrastructure and services,including fiber,towers,spectrum,small cells,
satellites,and other telecommunications services.Collectively,Grain Management's investment
team has over 100 years of experience as industryoperators and private equity professionals.
Its founder and Chief Executive Officer,David Grain,has over 25 years of experience in industry
and 15 years in private equity.Among other positions that he held prior to founding Grain
Management,Mr.Grain served from 2002 to 2006 as President of Global Signal,Inc.,the
largest communication tower owner/operator at the time.Mr.Grain also has served as Senior
Vice President of AT&T Broadband's New EnglandRegion.
II.DESIGNATED CONTACTS
The designated contacts for all correspondence,notices,inquiries,and orders in relation
to this notice are:
For Spectrotel,Inc.and Spectrotel of the West,For Spectrotel Ultimate Holdings,LLC
LLC
Matthew A.Brill Matthew S.DelNero
Michael H.Herman Corey Walker
LATHAM &WATKINS LLP COVINGTON&BURLING LLP
555 Eleventh Street NW One City Center
Suite 1ooo 85o Tenth Street,N.W.
Washington,DC 2ooo4 Washington,DC 20001
Tel:[phone] Tel:(202)[e-mail] [e-mail]
[e-mail] [e-mail]
III.DESCRIPTION OF THE TRANSACTION
Pursuant to an Equity Purchase Agreement ("Agreement")dated October 4,2022,
Transferee Spectrotel Ultimate indirectlypurchased all of the outstanding equity interests in
Spectrotel,therebyacquiring indirect ownership and control of Spectrotel of the West.As part
1 The Commission originally issued the CPCN to Spectrotel.On September io,2020,the
Commission re-issued the CPCN to Spectrotel of the West.See Order No.34778,Case No.SPE-
T-20-01 (Sept.10,2020).
February 14,2023
Page 3
of the Transaction,Spectrotel converted from a corporation to a limited liability company and
changed its name to Spectrotel Services,LLC.The Parties consummated the Transaction
January 18,2023-
Exhibit A and Exhibit B include organizationalcharts detailing the pre-and post-
Transaction ownership structure of Spectrotel of the West.
An original and one (1)copy of this letter are enclosed for filing.Please date-stamp and
return the extra copy in the envelope provided.Should you have any questions,please contact
the undersigned.
Respectfully submitted,
/s/Matthew A.Brill /s/Matthew S.DelNeroMatthewA.Brill Matthew S.DelNero
Michael H.Herman Corey Walker
LATHAM &WATKINS LLP COVINGTON &BURLING LLP
555 Eleventh Street NW One City Center
Suite 1000 850 Tenth Street,N.W.
Washington,DC 20004 Washington,DC 20001
Tel:[phone] Tel:(202)[e-mail] [e-mail]
[e-mail] [e-mail]
Counselfor Spectrotel,Inc.and Counselfor Spectrotel Ultimate Holdings,
Spectrotel of the West,LLC LLC
EXHIBIT A
Pre-Transaction Corporate OwnershipChart
Jack Dayan Jack Dayan 2021 Family Trust(United States)
90%10%
Spectrotel Consulting,LLC Spectrotel,Inc.Dayan Family 4K LLC
(Delaware)(Delaware)(Delaware)
5%85%10%
Spectrotel Holding Company,
LLC
(Delaware)
100%
Spectrotel of the West,LLC
(Delaware)
EXHIBIT B
Post-Transaction Corporate OwnershipChart
David Grain
(U.S.)
Grain Capital,LLC
Grain Capital II,LLCfD
Grain Management,LLC
GCOF III GP,LLC ·
Grain Grain Grain ,-'Communications Communications Communications o.2%GP ,-
Opportunity Fund Opportunity Fund III Opportunity Fund III
III,LP '
Grain CommunicationsSpectrotelManagement
Holdings,LLC Opportunity Fund III Master,Dayan Family 4k LLC
L.P.
94
Spectrotel Ultimate Holdings,
LLC
I
(1)Grain Capital II,LLC is the only managing Spectrotel IntermediatememberofGCOFIHGP,LLC,and has 64-5°/°Holdings,LLCofthemembershipinterests.Non-managing
members own a combined interest of 35.5%in
GCOF III GP,LLC.Spectrotel Services,LLCÐ 15°/o
(2)Grain Management,LLC acts as the
investment advisor of Grain Communications 85°¼
Opportunity Fund III Master,L.P.Spectrotel Holding Company,
(3)Spectrotel,Inc.converted from a corporation LLC
to a limitedliability company and changedits
name prior to closing.
(4)All ownership percentages100%unless
otherwise noted.Spectrotel of the West,LLC
GP participation is non-economic unless otherwisenoted.