Uniti Group Inc. Secures $600 Million in Senior Notes Offering
Uniti Group Inc. Secures Major Funding Through Senior Notes
Uniti Group Inc. (Nasdaq: UNIT) has announced a significant advancement in its financial strategy by pricing its offering of $600 million in Senior Unsecured Notes. This step, taken by its subsidiaries, including Uniti Group LP and Uniti Fiber Holdings Inc., marks a pivotal moment for the company as it works diligently to enhance its financial position.
Details of the Senior Notes Offering
The notes from Uniti Group will carry an 8.625% annual interest rate, maturing in 2032, and will be issued at full price. This strategic move aims not only to secure additional capital but also to bolster the company's balance sheet through smarter debt management practices.
Implications for Debt Management
Uniti plans to apply the net proceeds from this offering to partially redeem its existing $500 million in senior notes, which carry a higher interest rate of 10.50% due in 2028. The company is scheduled to initiate this redemption on June 24, 2025. This proactive measure is designed to mitigate interest expenses and improve cash flow, vital for meeting the company's operational and strategic goals.
Compliance and Regulatory Considerations
Uniti's notes will not be subject to registration under the Securities Act of 1933. They will be exclusively offered to institutional buyers and according to the appropriate guidelines to ensure regulatory compliance. This includes adhering to Rule 144A for qualified institutional buyers and Regulation S for outside the United States transactions.
Uniti’s Position as a Leading REIT
As a self-managed real estate investment trust (REIT), Uniti is focused on acquiring and constructing critical communication infrastructure. By March 31, 2025, the company successfully owned approximately 147,000 fiber route miles and 8.8 million fiber strand miles, making it a significant player in the fiber and wireless solutions market.
Growth Through Fiber Infrastructure
Uniti’s extensive network is vital for the communication industry, providing essential services to various customers. The ongoing investments in expanding this infrastructure are instrumental for strengthening Uniti's market position and enhancing service delivery.
Investor and Media Relations
For investors interested in Uniti's developments, associated contacts include:
Paul Bullington
Senior Vice President, Chief Financial Officer & Treasurer
paul.bullington@uniti.com | 251-662-1512
Bill DiTullio
Senior Vice President, Investor Relations & Treasury
bill.ditullio@uniti.com | 501-850-0872
Frequently Asked Questions
What is the purpose of the senior notes offering?
The purpose is to raise funds mainly to redeem existing higher-interest debt, thereby improving financial stability and reducing interest expenses.
What is Uniti Group's core business?
Uniti is focused on the acquisition and construction of critical communication infrastructure, making them a leader in fiber and wireless solutions in the communications industry.
How much did Uniti Group raise through this offering?
Uniti Group raised $600 million through the Senior Unsecured Notes offering.
When is the redemption of existing senior notes scheduled?
The redemption of the existing 2028 senior notes is planned for June 24, 2025.
Who can purchase the senior notes?
The senior notes are offered only to qualified institutional buyers and are subject to specific regulatory compliance to ensure proper transactions.
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