Attachment Attachment 1

This document pretains to ITC-ASG-INTR2019-02398 for Assignment on a International Telecommunications filing.

IBFS_ITCASGINTR201902398_1728267

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Pursuant to Section 214 of the Communications Act of 1934, as amended,1 and Section 63.04 of
the Commission’s Rules,2 Slappey Telephone, Inc., an Alabama corporation ("Slappey
Telephone”) and Slappey Communications, LLC, a Texas limited liability company ("Slappey
Communications"), together with BMP Slappey Holdco, LLC, a Texas limited liability company
(“BMP Holdco”) and Baymark Partners, LP, a Texas limited partnership (“Baymark Partners”)
and, together with Slappey Telephone, Slappey Communications and BMP Holdco (collectively,
“Applicants”), respectfully submit this application for the approval of a transaction under which
Slappey Telephone will sell certain of its regulated assets to Slappey Communications, a wholly-
owned subsidiary of BMP Holdco, an affiliate of Baymark Partners.

I.         ANSWER TO QUESTION 10

           A.       Slappey Telephone (Assignor)

Slappey Telephone, FCC Registration Number (“FRN”) 0011434420, is a corporation organized
under the laws of and headquartered in Alabama. Slappey Telephone holds blanket section 214
authority to provide domestic telecommunications services and an international section 214
authorization for global facilities-based and resold services under File No. ITC-214-20040915-
00366.

Slappey Telephone is certificated as a competitive local exchange carrier by the Alabama Public
Utilities Commission. The company offers a range of services throughout the state of Alabama,
including voice, data, networking, and Internet services.

Slappey Telephone may be contacted at the following address and telephone number:

                    Slappey Telephone, Inc.
                    4260 Cahaba Heights Court
                    Birmingham, Alabama 35343
                    Phone: (205) 970-4209




1
    47 U.S.C. § 214.
2
    47 C.F.R. § 63.04.
2
    47 C.F.R. § 63.04.


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       B.     Slappey Communications (Assignee)

Slappey Communications is a limited liability company organized under the laws of Texas. The
company is registered with the FCC under FRN No. 0028495364.

Slappey Communications is a wholly-owned subsidiary of BMP Holdco, which is an affiliate of
Baymark Partners.

Slappey Communications may be contacted at the following address and telephone number:

              Slappey Communications
              4260 Cahaba Heights Court
              Suite 100
              Birmingham, Alabama 35343
              Telephone: (205) 970-4209

       C.     BMP Holdco / Baymark Partners (Assignees)

BMP Holdco is a limited liability company organized under the state laws of Texas. BMP
Holdco is owned by certain owners of Slappey Telephone and investment funds affiliated with
Baymark Partners.

Baymark Partners is a Dallas, Texas-based growth-oriented private equity firm that invests in
middle market service, distribution, manufacturing and tech-enabled companies. Among other
services and expertise, Baymark Partners provides owners with liquidity and companies with
resources to accelerate their growth.




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       D.         Point of Contact Information

       Correspondence concerning this Application should be sent to:

If to Slappey Telephone, Inc.:                   If to BMP Slappey, Baymark Partners
                                                 and/or Slappey Communications:

Slappey Communications, LLC                      Granite Park II
2476 Altadena Road                               5700 Granite Parkway, Ste. 435
Vestavia Hills, AL 35243                         Plano, TX 75024
Attn: William J. Slappey, IV                     Attn: David Hook
Email: will.slappey@slappey.com                  Email: dhook@baymarkpartners.com

with a copy to:                                  with a copy to:

Sirote & Permutt, P.C.                           Hallett & Perrin, P.C.
2311 Highland Avenue South                       1445 Ross Avenue, Suite 2400
Birmingham, AL 35205                             Dallas, TX 75202
Attn: Todd Carlisle                              Attention: Julie Smith
Email: tcarlisle@sirote.com                      Email: jsmith@hallettperrin.com




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II.     ANSWER TO QUESTION 11

The following information is provided for any person or entity that owns a 10% or greater equity
interest in Slappey Telephone:

             Name                      Address            Citizenship       Principal         % Equity
                                                                            Business

 William J. Slappey, III      2476 Altadena Rd.             U.S.A.      Voice, data and         82%
                              Vestavia Hills, AL 35243                  Internet services


The following information is provided for any person or entity that owns a 10% or greater equity
interest in Slappey Communications:

             Name                      Address            Citizenship       Principal         % Equity
                                                                            Business

 BMP Slappey Holdco, LLC      Granite Park II               U.S.A       Investing/             100%
                              5700 Granite Pkwy.                        Lending
                              Suite 435
                              Plano, TX 75024


The following information is provided for any person or entity that owns a 10% or greater equity
interest in BMP Holdco:

             Name                      Address            Citizenship       Principal         % Equity
                                                                            Business

 BMP Slappey Investment, LP    Granite Park II              U.S.A       Investing/             51.4%
                               5700 Granite Pkwy.                       Lending
                               Suite 435
                               Plano, TX 75024

 BMP Slappey Common, LLC       Granite Park II              U.S.A.      Investing/              15%
                               5700 Granite Pkwy.                       Lending
                               Suite 435
                               Plano, TX 75024

 Novus Method, LLC             3006 Asbury Park Pl.         U.S.A.      Investing               13%
                               Vestavia Hills, AL 35243

 Argonian, LLC                 2920 Lewis St.               U.S.A.      Investing               12%
                               Vestavia Hills, AL 35243




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III.   ANSWER TO QUESTION 13

The transaction involves repayment of various items of indebtedness by Slappey Telephone and
the sale of assets by Slappey Telephone to Slappey Communications. William J. Slappey, III,
William J. Slappey, IV, and Wesley J. Slappey are the sole record and beneficial owners of all
issued and outstanding equity interests of Slappey Telephone.

Upon closing the transaction, William J. Slappey, IV and Wesley J. Slappey will become
employees of Slappey Communications. It is also anticipated that William J. Slappey, III, will
become an independent contractor of Slappey Communications on or shortly after closing of the
transaction. All other existing employees of Slappey Telephone will be offered employment
with Slappey Communications.

Pursuant to the terms of the transaction, Slappey Communications will acquire certain of the
assets of Slappey Telephone. The assets will be held by Slappey Communications, which is a
wholly-owned subsidiary of Baymark Partners.

The transaction is expected to close as soon as possible, subject to regulatory approval.




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IV.        ANSWER TO QUESTION 20

The Applicants request streamlined treatment of this Application pursuant to section 63.03 of the
Commission’s Rules.3 This Application is eligible for streamlined processing pursuant to Section
63.03(b)(2) of the Commission’s Rules on the basis that: (1) the proposed transaction will not
result in the Applicants (including their affiliates, as that term is defined in Section 3(1) of the
Act) having a market share in the interstate, interexchange market of greater than ten (10)
percent; (2) the Applicants (including their affiliates) will provide competitive telephone
exchange services or exchange access services exclusively in geographic areas served by a
dominant local exchange carrier that is not a party to the transaction; and (3) neither the
Applicants nor any of their affiliates are regulated as dominant with respect to any service.4

The proposed transaction will serve the public interest. Under new ownership, Slappey
Communications will continue to provide high-quality telecommunications services to its U.S.
business and enterprise customers while gaining access to the additional financial resources and
the operational expertise of Baymark Partners. With the strong financial backing of Baymark
Partners, it is anticipated that the transfer of control will bolster Slappey Communications’
ability to provide innovative enterprise services and enable the company to become a stronger
competitor.

The improved financial environment resulting from the proposed transaction will help ensure a
continued high level of service to existing and new customers. Slappey Communications will
continue to be operated by highly experienced, well-qualified management, operating and
technical personnel.

In addition, the transaction will not result in a change in services, rates, terms or conditions for
customers. The transaction therefore will be seamless and transparent to customers. Future
changes in rates, terms and conditions of service, if any, will be undertaken pursuant to
applicable law and contract provisions.




3
    47 U.S.C. § 63.03.
4
    Id § 63.03(b)(1)-(3).


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V.         ADDITIONAL INFORMATION REQUIRED BY SECTION 63.04

Pursuant to 63.04(d), and in accordance with the requirements of 63.18, the Applicants hereby
certify that:

       − no party to this application is subject to a denial of federal benefits pursuant to section
         5301 of the Anti-Drug Abuse Act of 1988;5
       − there are no other Commission applications related to this transaction;6
       − the Applicants are not requesting special consideration because either party or its
         subsidiaries and affiliates to the transaction are facing imminent business failure;7
       − there are no separately filed waiver requests are being sought in conjunction with this
         transaction.8




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5
    47 C.F.R. § 63.18(a)(6).
6
    Id. § 63.04(a)(9).
7
    Id. § 63.04(a)(10).
8   Id. § 63.04(a)(11).


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Document Created: 0770-06-12 00:00:00
Document Modified: 0770-06-12 00:00:00

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