Windstream Services, LLC and Windstream Escrow Finance Corp., subsidiaries of Windstream Holdings II, LLC, announced the pricing of $800 million aggregate principal amount of new 8.250% Senior First Lien Notes due 2031. This financing move is a significant step in preparing for the planned merger with Uniti Group Inc. The offering is expected to close on October 4, 2024, subject to customary closing conditions.
Concurrently, the Windstream Co-Issuers agreed to a $500 million incremental first lien term loan facility under Windstream’s existing credit agreement, with loans maturing on October 1, 2031. These transactions are designed to permit the collapse of Uniti’s and Windstream’s debt silos upon the closing of the planned merger, simplifying the capital structure of the combined entity.
Windstream intends to use the net proceeds from these financing activities to repay, refinance, and reduce certain outstanding loans and associated expenses. A portion of the proceeds will also be allocated to expand and accelerate Windstream's Kinetic fiber-to-the-home buildout, strengthening its position in the residential fiber market.
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