Industry: Rural Local Exchange Carrier, December 2004

Investment Type: Leverage Buy-out

Company Description: TeleGuam Holdings ("TeleGuam") is the acquisition vehicle for the recent acquisition of Guam Telephone Authority ("GTA"). The acquisition marks the privatization of the last government-owned local telephone company in the United States. TeleGuam currently has approximately 65,000 access lines and is the only local exchange carrier on the island of Guam.

Transaction: SCGF and affiliates provided the equity capital for a leveraged buy-out of GTA by TeleGuam. The sources of capital for the buyout were a combination of debt, equity, and a promissory note.