SHORT HILLS, N.J., Sept. 1 /PRNewswire/ -- Diamond announces today that First Telecom Services LLC ("First Telecom"), a subsidiary of First Communications, has contributed its wireless tower assets (the "Assets") to Diamond. The Assets include 368 leases on wireless communications towers and selected FirstEnergy Corp. ("FirstEnergy") operating affiliates' utility structures throughout New Jersey, Pennsylvania, and Ohio, as well as the right to collocate future tenants on FirstEnergy utility and communications structures throughout its service regions, which cover 36,100 square miles.

The terms of the transaction include First Telecom contributing the assets related to its tower business to Diamond. In return, Diamond provided a limited guaranty of $50 million of First Telecom's debt that it had incurred in connection with its acquisition and operation of the Assets, issued to First Telecom membership units with an agreed value of $20 million and provided for a potential earn-out. Diamond subsequently refinanced the guaranteed debt with the proceeds from a new credit facility provided by affiliates of Goldman Sachs. A representative of First Communications will join the Diamond Board.

"We are very excited about this acquisition", said Ed Farscht, CEO of Diamond Communications. "First Telecom Services' strong existing business has 368 wireless tenants on communications tower and utility structures but this transaction also provides Diamond with the opportunity to lease up and develop additional towers in the future. This purchase is consistent with Diamond's strategy to expand its business through new tower development as well as strategic acquisitions."

Ray Hexamer, CEO of First Communications, said, "Diamond Communications' expertise and vast background in the tower industry strategically adds focus and future value to these assets while allowing First Communications to concentrate on its core business."

About Diamond Communications

With this transaction, Diamond will have a portfolio of over 600 owned towers and other collocation structures primarily in the Eastern U.S. Diamond is a leading communications tower company with expertise in tower management, site development, and construction. Diamond is a portfolio company of investment funds managed by Och-Ziff Capital Management Group LLC ("Och-Ziff"), a leading global institutional alternative asset management firm listed on the New York Stock Exchange (NYSE: OZM). Och-Ziff is one of the largest alternative asset managers in the world, with $21.5 billion of assets under management as of August 1, 2009.

About First Communications

First Communications is a leading facilities-based telecommunications provider specializing in advanced data and voice services for commercial customers as well as residential voice service. First Communications has become one of the largest Integrated Telecommunications companies in the Midwest.

SOURCE Diamond Communications