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First Communications, the holding company of telecom service providers First Communications LLC and Xtension Services, has floated on AIM.

The offering consisted of $50 million (£24.8 million) of common stock to US and UK investors and an associated $40 million issue of preferred stock to certain investors.

Three separate classes of warrants were also issued, with all investors participating in one tranche and the other two tranches being issued to the preferred stock investors.

The Ohio-based firm was advised on the legal aspects of the IPO by a transatlantic team from law firm Bingham operating from the UK and US.

London corporate partner Vance Chapman led the Bingham team in the UK, working with associates Tony Barnes and Graham Conlon advising on the AIM admission. DC partner Jean Kiddoo led the US team, working with DC associate Danielle Burt to provide FCC and state regulatory advice.

Corporate, transactional and US securities advice was provided by New York partner Brian Beglin and consultant David Boillot, who were assisted by DC corporate associate Kelly Grez.

"The transaction was complex as it involved the roll up of several different existing businesses in the heavily regulated US telecommunications sector, and the creation of a multi-tiered capital structure for First Communications," Chapman said.

"This transaction represents precisely the type of cross-border synergies that the TMT (Telecoms, Media and Technology) practice was looking for when it joined Bingham as part of the Swidler Berlin merger last year," Kiddoo said. "There are few if any firms that combine the depth of telecom, corporate and securities expertise that Bingham was able to bring to this transaction.”

Bingham’s team also advised in the connected acquisitions of First Communications LLC and Xtension Services, forming a voice and data telecom services provider offering traditional and IP-based communications services and network management services to residential and business customers in 49 of the 50 US states.

The holding company floated with a market cap of $134.51 million, with the share price at $5.00.

Chief executive of First Communications, Ray Hexamer, said: “We are delighted that the listing of the company has been completed successfully. We witnessed strong support from both sides of the Atlantic, including that of our leading investor, the Gores Group, a company with vast experience in both the technology field and telecommunications sectors.”

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