Uniti Group Inc. Announces Launch of Fiber Securitization Notes Offering
Uniti Group (Nasdaq: UNIT) announced that its subsidiaries, Uniti Fiber ABS Issuer and Uniti Fiber TRS Issuer , have launched an offering of $589 million in secured fiber network revenue term notes. The Notes, due for repayment in April 2030, will be secured by fiber network assets and related customer contracts in Florida and the Gulf Coast region (Louisiana, Mississippi, and Alabama).
The proceeds will be used to repay and terminate the existing ABS bridge facility and for general corporate purposes, including potential success-based capital investments and debt repayment. The Notes will be offered exclusively to qualified institutional buyers under Rule 144A and to non-U.S. investors under Regulation S, without registration under the Securities Act of 1933.
Uniti Group (Nasdaq: UNIT) ha annunciato che le sue sussidiarie, Uniti Fiber ABS Issuer e Uniti Fiber TRS Issuer, hanno lanciato un'offerta di 589 milioni di dollari in titoli di debito garantiti dalla rete in fibra ottica. I Titoli, che scadranno ad aprile 2030, saranno garantiti da beni relativi alla rete in fibra e dai contratti con i clienti nella Florida e nella regione del Golfo del Messico (Louisiana, Mississippi e Alabama).
Il ricavato sarà utilizzato per rimborsare e terminare l'attuale struttura di bridge ABS e per scopi aziendali generali, inclusi potenziali investimenti in capitale basati sul successo e il rimborso del debito. I Titoli saranno offerti esclusivamente a compratori istituzionali qualificati ai sensi della Regola 144A e a investitori non statunitensi ai sensi della Regulazione S, senza registrazione ai sensi del Securities Act del 1933.
Uniti Group (Nasdaq: UNIT) anunció que sus subsidiarias, Uniti Fiber ABS Issuer y Uniti Fiber TRS Issuer, han lanzado una oferta de 589 millones de dólares en notas de ingresos garantizadas por la red de fibra óptica. Las Notas, que vencen en abril de 2030, estarán respaldadas por activos de la red de fibra y contratos relacionados con clientes en Florida y la región del Golfo de México (Luisiana, Misisipí y Alabama).
Los ingresos se utilizarán para reembolsar y finalizar la actual instalación de puente ABS y para fines corporativos generales, incluidas posibles inversiones de capital basadas en el éxito y el reembolso de la deuda. Las Notas se ofrecerán exclusivamente a compradores institucionales calificados bajo la Regla 144A y a inversores no estadounidenses bajo la Regulación S, sin registro bajo la Ley de Valores de 1933.
유니티 그룹 (Nasdaq: UNIT)는 자회사인 유니티 파이버 ABS 발행자 및 유니티 파이버 TRS 발행자가 5억 8,900만 달러 규모의 보안된 광섬유 네트워크 수익 채권을 출시했다고 발표했습니다. 이 채권은 2030년 4월에 만기가 되며, 플로리다 및 걸프코스트 지역(루이지애나, 미시시피, 앨라배마)의 광섬유 네트워크 자산 및 관련 고객 계약으로 담보됩니다.
조달된 자금은 기존 ABS 브릿지 시설을 상환하고 종료하는 데 사용되며, 성공 기반의 자본 투자 및 부채 상환을 포함한 일반 회사 용도로 사용될 것입니다. 이 채권은 1933년 증권법에 따른 등록 없이 규정 144A에 따라 자격을 갖춘 기관 투자자에게 독점적으로 제공되며, 비미국 투자자에게는 규정 S에 따라 제공됩니다.
Uniti Group (Nasdaq: UNIT) a annoncé que ses filiales, Uniti Fiber ABS Issuer et Uniti Fiber TRS Issuer, avaient lancé une offre de 589 millions de dollars dans le cadre de titres obligataires garantis par un réseau de fibre optique. Les Obligations, qui doivent être remboursées en avril 2030, seront garanties par des actifs du réseau de fibre optique et des contrats clients associés en Floride et dans la région du Golfe du Mexique (Louisiane, Mississippi et Alabama).
Le produit sera utilisé pour rembourser et mettre fin à l'installation de pont ABS existante et pour des besoins généraux de l'entreprise, y compris des investissements potentiels en capital basés sur le succès et le remboursement de dettes. Les Obligations seront offertes exclusivement à des acheteurs institutionnels qualifiés en vertu de la règle 144A et à des investisseurs non américains en vertu de la régulation S, sans enregistrement en vertu de la loi sur les valeurs mobilières de 1933.
Uniti Group (Nasdaq: UNIT) gab bekannt, dass seine Tochtergesellschaften, Uniti Fiber ABS Issuer und Uniti Fiber TRS Issuer, ein Angebot über 589 Millionen US-Dollar an gesicherten Erlösanleihen für das Glasfasernetz gestartet haben. Die Anleihen, die im April 2030 fällig sind, werden durch Glasfasernetzanlagen und damit verbundene Kundenverträge in Florida und der Golfküstenregion (Louisiana, Mississippi und Alabama) gesichert.
Die Erlöse werden verwendet, um die bestehende ABS-Brückenfinanzierung zurückzuzahlen und zu beenden sowie für allgemeine Unternehmenszwecke, einschließlich potenzieller kapitalintensiver Investitionen, die auf Erfolg basieren, und der Rückzahlung von Schulden. Die Anleihen werden ausschließlich an qualifizierte institutionelle Käufer gemäß Regel 144A und an nichtamerikanische Investoren gemäß Regulation S angeboten, ohne dass eine Registrierung gemäß dem Securities Act von 1933 erforderlich ist.
- Securing $589 million in new financing through fiber network revenue notes
- Asset-backed security structure potentially offering better financing terms
- Strategic debt restructuring opportunity through existing ABS bridge facility repayment
- Additional debt burden with new $589 million notes offering
- to qualified institutional buyers, restricting potential investor base
Insights
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The designation of the issuers as "unrestricted subsidiaries" is particularly noteworthy - this structure effectively ring-fences these assets and their associated debt from Uniti's existing credit agreements and senior notes. This segregation can potentially improve the company's overall credit profile and borrowing capacity.
The planned use of proceeds to retire the existing ABS bridge facility indicates a transition from shorter-term to longer-term financing, which should enhance debt maturity profile and reduce refinancing risk. The additional flexibility for success-based capital investments could support growth initiatives in Uniti's fiber infrastructure business.
The securitization of fiber network assets demonstrates the growing value of digital infrastructure as a distinct asset class. These assets, particularly in the targeted regions, represent essential infrastructure with stable, predictable cash flows from customer contracts. The geographic focus on Florida and the Gulf Coast region is strategic, as these areas continue to see population growth and increasing demand for high-speed connectivity.
For a simplified explanation: Think of this like taking out a mortgage on a rental property. The fiber networks are like the property, the customer contracts are like the rental agreements and Uniti is using these stable income-producing assets to secure better financing terms. This arrangement allows Uniti to potentially expand its network while maintaining financial flexibility.
LITTLE ROCK, Ark., Jan. 09, 2025 (GLOBE NEWSWIRE) -- Uniti Group Inc. (the “Company,” “Uniti,” or “we”) (Nasdaq: UNIT) today announced that Uniti Fiber ABS Issuer LLC and Uniti Fiber TRS Issuer LLC, limited-purpose, bankruptcy remote subsidiaries of Uniti (collectively, the “Issuers”), have commenced an offering of
Uniti intends to use the net proceeds of the offering to, among other things, repay and terminate its existing ABS bridge facility and for general corporate purposes, which may include success-based capital investments and/or repayment of outstanding debt.
The Notes will not be registered under the Securities Act of 1933, as amended (the “Securities Act”), or any state securities laws, and may not be offered or sold in the United States absent registration or an applicable exemption from registration under the Securities Act or any applicable state securities laws. The Notes will be offered only to persons reasonably believed to be qualified institutional buyers under Rule 144A under the Securities Act and outside the United States in compliance with Regulation S under the Securities Act.
This press release does not constitute an offer to sell, or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
ABOUT UNITI GROUP INC.
Uniti, an internally managed real estate investment trust, is engaged in the acquisition and construction of mission critical communications infrastructure, and is a leading provider of fiber and other wireless solutions for the communications industry. As of September 30, 2024, Uniti owns approximately 144,000 fiber route miles, 8.7 million fiber strand miles, and other communications real estate throughout the United States. Additional information about Uniti can be found on its website at www.uniti.com.
FORWARD-LOOKING STATEMENTS
Certain statements in this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended from time to time. Those forward-looking statements include all statements that are not historical statements of fact, including those regarding the proposed offering of the Notes.
Words such as "anticipate(s)," "expect(s)," "intend(s)," “plan(s),” “believe(s)," "may," "will," "would," "could," "should," "seek(s)" and similar expressions, or the negative of these terms, are intended to identify such forward-looking statements. These statements are based on management's current expectations and beliefs and are subject to a number of risks and uncertainties that could lead to actual results differing materially from those projected, forecasted or expected. Although we believe that the assumptions underlying the forward-looking statements are reasonable, we can give no assurance that our expectations will be attained. Factors which could have a material adverse effect on our operations and future prospects or which could cause actual results to differ materially from our expectations include, but are not limited to the Company’s and Windstream’s ability to consummate our merger with Windstream on the expected terms or according to the anticipated timeline, the risk that our merger agreement with Windstream (the “Merger Agreement”) may be modified or terminated, that the conditions to our merger with Windstream may not be satisfied or the occurrence of any event, change or other circumstances that could give rise to the termination of the Merger Agreement, the effect of the announcement of our merger with Windstream on relationships with our customers, suppliers, vendors, employees and other stakeholders, our ability to attract employees and our operating results and the operating results of Windstream, the risk that the restrictive covenants in the Merger Agreement applicable to us and our business may limit our ability to take certain actions that would otherwise be necessary or advisable, the diversion of management’s time on issues related to our merger with Windstream, the risk that we fail to fully realize the potential benefits, tax benefits, expected synergies, efficiencies and cost savings from our merger with Windstream within the expected time period (if all all), legal proceedings that may be instituted against Uniti or Windstream following announcement of the merger, if the merger is completed, the risk associated with Windstream’s business, adverse impacts of inflation and higher interest rates on our employees, our business, the business of our customers and other business partners and the global financial markets, the ability and willingness of our customers to meet and/or perform their obligations under any contractual arrangements entered into with us, including master lease arrangements, the ability and willingness of our customers to renew their leases with us upon their expiration, our ability to reach agreement on the price of such renewal or ability to obtain a satisfactory renewal rent from an independent appraisal, and the ability to reposition our properties on the same or better terms in the event of nonrenewal or in the event we replace an existing tenant, the availability of and our ability to identify suitable acquisition opportunities and our ability to acquire and lease the respective properties on favorable terms or operate and integrate the acquired businesses, or to integrate our business with Windstream’s as a result of the merger, our ability to generate sufficient cash flows to service our outstanding indebtedness and fund our capital funding commitments, our ability to access debt and equity capital markets, the impact on our business or the business of our customers as a result of credit rating downgrades and fluctuating interest rates, our ability to retain our key management personnel, changes in the U.S. tax law and other federal, state or local laws, whether or not specific to real estate investment trusts, covenants in our debt agreements that may limit our operational flexibility, the possibility that we may experience equipment failures, natural disasters, cyber-attacks or terrorist attacks for which our insurance may not provide adequate coverage, the risk that we fail to fully realize the potential benefits of or have difficulty in integrating the companies we acquire, other risks inherent in the communications industry and in the ownership of communications distribution systems, including potential liability relating to environmental matters and illiquidity of real estate investments; and additional factors described in our reports filed with the U.S. Securities and Exchange Commission.
Uniti expressly disclaims any obligation to release publicly any updates or revisions to any of the forward-looking statements set forth in this press release to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based.
INVESTOR AND MEDIA CONTACTS:
Paul Bullington, 251-662-1512
Senior Vice President, Chief Financial Officer & Treasurer
paul.bullington@uniti.com
Bill DiTullio, 501-850-0872
Vice President, Investor Relations & Treasury
bill.ditullio@uniti.com
This press release was published by a CLEAR® Verified individual.
FAQ
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