Hawaiian Telcom said it plans to sell its Yellow Pages directory publishing business to a Colorado company for $435 million, capitalizing on the high value that buyers are placing on local directories.

Money from the sale to Englewood-based Local Insight Media LP would pay down debt and help provide new services statewide, Hawaiian Telcom said. The sale is subject to approval by the state Public Utilities Commission.

"This sale allows us to continue to provide quality service to our customers and also to focus on more rapid investments in our core businesses — telecommunications services and products," said Michael Ruley, Hawaiian Telcom's chief executive, in a statement.

Hawaiian Telcom had $1.38 billion in long-term debt on Dec. 31. The company lost $144.6 million last year because of high debt costs and costs associated with turning the company into a standalone phone service. Hawaiian Telcom was created following the $1.6 billion sale of Verizon Hawaii to The Carlyle Group in May 2005.

The Yellow Pages sale comes amid a trend of telephone companies selling their directory operations to focus on telecommunications.

"Valuations on directory businesses are at an all-time high," Ruley said.

The directory will continue to be published as the official telephone book of Hawaiian Telcom and will still be named the Hawaiian Telcom Yellow Pages. The sale, if approved, would have no impact on the directory business' 62 contract employees, Hawaiian Telcom said. LM Berry Co. is expected to remain the directory's printer.

In 2007, Hawaiian Telcom will publish 10 directories on O'ahu, Maui, Hawai'i and Kaua'i with a total circulation exceeding 1.8 million white and yellow pages books. Hawaiian Telcom said its directory currently ranks No. 1 in the Hawai'i market for possession and usage by consumers.

Hawaiian Telcom's directory competes with directories published by Ad-Ventures and Paradise Pages.

Local Insight Media publishes print directories and Internet-based local search services in the Greater Cincinnati area, Alaska and the Caribbean.

Hawaiian Telcom said it plans to submit an application for approval of the sale to the PUC within two weeks.

In general, it takes the agency four to six months to process such an application, according to the PUC.

Reach Sean Hao at shao@honoluluadvertiser.com.