Attachment Exhibit 1

This document pretains to ITC-T/C-20181105-00204 for Transfer of Control on a International Telecommunications filing.

IBFS_ITCTC2018110500204_1568315

                                        ATTACHMENT 1

                  Joint International and Domestic Section 214 Application to
                          Transfer Control of Meriplex Telecom, LLC

       This joint application seeks Commission consent under Section 214 of the
Communications Act of 1934, as amended (the “Act”), and Sections 63.04 and 64.24 of the
Commission’s rules 1 to transfer control of Meriplex Telecom, LLC (“Meriplex Telecom”) from
Henley Investments, Ltd. (“Henley” or “Transferor”) to Clairvest Group Inc. (“Clairvest” or
“Transferee”). Meriplex Telecom holds an international Section 214 authorization as well as
blanket Section 214 domestic operating authority. As explained further below, grant of the
application serves the public interest.

I.       RESPONSES TO QUESTIONS SET FORTH IN THE FCC 214 MAIN FORM

       Responses to certain questions set forth in the application’s FCC 214 Main Form are as
follows:

Answers to Question 10

Contact Information for Henley and Meriplex Transferee Contact Information
Telecom
                                            James Miller
David Henley                                General Counsel & Corporate Secretary
Managing Director                           Clairvest Group Inc.
Henley Management II, LLC                   22 St. Clair Avenue East, Suite 1700
10111 Richmond Avenue, Suite 500            Toronto, ON M4T 2S3, Canada
Houston, TX 77042                           Tel. 416-413-6030
281-404-2296                                Fax: 416-925-5753
dhenley@meriplex.com                        jmiller@clairvest.com

With copies to:                                       With a copy to:

Arthur Henley                                         Timothy J. Cooney
Henley Management II, LLC                             Jennifer L. Kostyu
6805 Silver Mine Road                                 Wilkinson Barker Knauer, LLP
Harwood, TX 78632                                     1800 M Street, N.W., Suite 800N
832-539-1485                                          Washington, D.C. 20036
arthur@ahenley.com                                    Tel. 202-783-4141
                                                      Fax 202-783-5851
and                                                   tcooney@wbklaw.com
                                                      jkostyu@wbklaw.com
Dana Frix
Frix Advisory Group, LLC
6649 Sorrel Street

1
    47 U.S.C. § 214; 47 C.F.R. §§ 63.04, 64.24.

                                                  1


McLean, VA 22101
(703) 790-5801
dana@frixadvisory.com

Place of Organization

       Meriplex Telecom (FRN: 0019621796) is a limited liability company organized under the
laws of the State of Texas. Henley (FRN: 0027959493) is a limited partnership organized under
the laws of the State of Texas. Clairvest (FRN: 0027928340) is a corporation organized under
the laws of the Provinces of Ontario and Manitoba (Canada).

Prior International Section 214 Authorizations

         Meriplex Telecom holds an international Section 214 authorization to provide global
facilities-based and resold services between the United States and international points pursuant to
Section 63.18(e)(1) and 63.18(e)(2) of the Commission’s rules (File No. ITC-214-20100805-
00325). (Meriplex Telecom provides de minimis international telecommunications services, and
such services are less than $5,000.00 per month.) Clairvest does not hold any international
Section 214 authorizations.

Answer to Question 11

        Pursuant to Section 63.18(h) of the Commission’s rules, the following entities will
directly or indirectly hold a ten percent or greater equity interest in Meriplex Telecom upon
consummation of this transaction. Charts showing the pre- and post-transaction ownership of
Meriplex Telecom also are attached.

        Meriplex Communications, Ltd. (“MCom”), will hold 100 percent of the ownership
interest of Meriplex Telecom. MCom is a Delaware corporation located at 10111 Richmond
Avenue, Suite 500, Houston, TX 77042. Its principal business is the provision of managed
solutions.

        Clairvest holds approximately 59.9 percent of the ownership interests of MCom
indirectly through three investment funds. CEP V Co-Investment Limited Partnership (“CEP
Co-Invest”) holds directly approxiately 18 percent of the ownership interest of MCom; Clairvest
Equity Partners V Limited Partnership (“Clairvest Equity V”) holds directly approximately 35.2
percent of the ownership intrests of MCom; and Clairvest Equity Partners V-A Limited
Partnership (“Clairvest Equity V-A”) holds directly approximately 6.7 percent of the ownerhsip
interests of MCom. Clairvest General Partner V Limited Partnership (“Clairvest GP V”) is a
general partner of CEP Co-Invest, Clairvest Equity V, and Claivest Equity V-A. Clairvest GP
Manageco Inc. (“Clairvest Manageco”) also is a general partner of Clairvest Equity V and
Clairvest Equity V-A, as well as manager of Clairvest Equity V-A. Clairvest GP (GPLP) Inc.
(“Clairvest GPLP”) is the general partner of Clairvest GP V. Clairvest holds 100 percent of the
ownership interests of Clairvest GPLP and Clairvest Manageco. Each of the preceding Clairvest
entities is formed under the laws of Canada, and its principal business of each is investment
company. Kenneth B. Rotman and Gerald R. Heffernan each hold approxiately 50.2 percent and
13.3 percent, respectively, of the ownership interests of Clairvest. Mr. Rotman and Mr.

                                                2


Heffernan are each Canadian citizens. The address for the Clairvest entities, Mr. Rotman, and
Mr. Heffernan is 22 St. Clair Avenue East, Suite 1700, Toronto, ON M4T 2S3, Canada.

      David Henley directly holds approximately 30 percent of the ownership interests of
MCom. Mr. Henley is a U.S. citizen, and his address is 10111 Richmond Avenue, Suite 500,
Houston, TX 77042.

      Dusty Corning directly holds approximately 10.1 percent of the ownership interests of
MCom. Mr. Corning is a U.S. citizen, and his address is 10111 Richmond Avenue, Suite 500,
Houston, TX 77042.

      No other entity or individual will directly or indirectly hold a 10 percent or greater
ownership interest in Meriplex Telecom post-closing.

Answer to Question 13

Description of Transaction and Public Interest Statement

       Meriplex Telecom is a Texas limited liability company headquartered in Houston, Texas.
Meriplex Telecom is currently controlled by Henley, its general partner. Meriplex Telecom
provides voice and other telecommunications services to MCom’s enterprise customers. MCom
is a managed solution provider specializing in delivering intelligent network solutions, cloud
enablement, and managed services for the mid-enterprise market.

        MCom is indirectly controlled by Clairvest, a private equity management firm
headquartered in Toronto, Canada. Clairvest is a publicly listed company on the Toronto Stock
Exchange (TSX: CVG). It invests its own capital and that of third parties in emerging and
established companies. In addition to providing financing, Clairvest contributes strategic
expertise and execution ability to support the growth and development of its partners.

       A Purchase Agreement between Henley, certain investment funds controlled by Clairvest,
and MCom (the “Agreement”), proposes to transfer the membership interests of Meriplex
Telecom from Henley and its limited partners to MCom. 2 Upon receipt of FCC approval and
consummation of the transaction, Meriplex will become a wholly-owned subsidiary of MCom,
which in turn is majority-owned and controlled by Clairvest through various investment funds.

        The transaction will serve the public interest by providing additional capital to Meriplex
Telecom, which in turn will enhance its ability to maintain and improve its network and services
and better compete in the telecommunications marketplace. The transaction will have no adverse
impact on Meriplex Telecom’s customers, and will be transparent to customers in terms of the
service they now receive. Meriplex Telecom will continue to provide services at the same rates

2
 On October 2, 2018, Meriplex Telecom was spun off in a pro forma transaction from MCom, its then
immediate parent company; and its membership interests were distributed to those who, immediately
prior to the spin-off, were the principal owners of MCom. See Notification of the Pro Forma Transfer of
Control of Meriplex Telecom, LLC, File No. ITC-T/C-INTR2018-09638 (filed Oct. 29, 2018). Under the
proposed transaction, MCom, now as controlled by Clairvest, would reacquire Meriplex Telecom.

                                                  3


and on the same terms and conditions as are currently in effect. Moreover, the transaction poses
no risk of competitive harm to the domestic or U.S.-international telecommunications markets.
Meriplex Telecom holds only a de minimis share of each of the domestic and U.S.-international
markets, and consumers will continue to have a wide range of competitive choices following
consummation of the transaction. Clairvest also is not itself and is not affiliated with any U.S.
telecommunications carriers, thus the transaction will not result in a reduction in competitors.

Answer to Question 20

       This application qualifies for streamlined processing pursuant to Section 63.12 of the
Commission’s rules. Neither Meriplex Telecom nor Clairvest has any foreign carrier affiliates,
and will have no such affiliates post-closing. They therefore qualify for a presumption of non-
dominance under Section 63.10 of the Commission’s rules on all U.S.-international routes.

II.      INFORMATION REQUIRED BY SECTION 63.04 OF THE FCC’S RULES IN
         RELATION TO TRANSFER OF BLANKET DOMESTIC SECTION 214
         AUTHORITY

        In support of the applicants’ request for consent to transfer control of Meriplex Telecom
to Clairvest, the following information is submitted pursuant to Section 63.04 of the
Commission’s rules. 3 Specifically, Section 63.04(b) provides that applicants submitting a joint
international/domestic Section 214 application should submit in an attachment to the
international Section 214 application responses to the information requested in paragraphs (a)(6)
through (a)(12) of Section 63.04:

(a)(6) Description of the transaction:

         A description of the transaction is set forth in Section I above.

(a)(7) Description of the geographic areas in which the applicants offer domestic
       telecommunications services, and what services are provided in each area:

       Meriplex Telecom provides telecommunications services to enterprise customers
primarily in the Southwest U.S. Neither Clairvest nor or its affiliates provide
telecommunications services.

(a)(8) Statement as to how the application qualifies for streamlined treatment:

         This application qualifies for streamlined treatment under Section 63.03(b) of the
Commission’s rules because: (1) the Transferee is not a telecommunications provider; (2)
Meriplex Telecom’s market share of the interstate, interexchange market is significantly less
than 10 percent; and (3) Meriplex Telecom provides competitive telecommunications services
exclusively in geographic markets served by a dominant local exchange carrier that is not a party
to this transaction. No applicant is dominant with respect to any telecommunications service
offered in the United States.

3
    47 C.F.R. § 63.04.

                                                   4


(a)(9) Identification of all other Commission applications related to this transaction:

         No other FCC applications related to this transaction are being filed.

(a)(10) Statement of whether the applicants request special consideration because either
        party is facing imminent business failure:

      The applicants request no special consideration of this application for reasons relating to
imminent business failure.

(a)(11) Identification of any separately filed waiver requests being sought in conjunction
        with this transaction:

        The applicants seek no separately filed waiver requests in conjunction with this
transaction.

(a)(12) Statement showing how grant of the Application will serve the public interest,
        convenience, and necessity:

       A demonstration of how the grant of application serves the public interest, convenience,
and necessity is set forth in Section I above.




                                                  5

4840-8940-1465 v2



Document Created: 2018-11-05 11:57:49
Document Modified: 2018-11-05 11:57:49

© 2024 FCC.report
This site is not affiliated with or endorsed by the FCC