Uniti Group Inc. Announces Pricing of $250 Million Fiber Securitization Notes Offering

Rhea-AI Summary

Uniti Group (Nasdaq: UNIT) priced a $250,000,000 secured fiber securitization due to anticipated repayment in January 2031, closing expected October 24, 2025. The offering comprises $180.0M 5.177% Class A-2 notes, $28.2M 5.621% Class B notes and $41.8M 7.834% Class C notes, with a weighted average coupon of ~5.671%.

The Notes are secured by fiber network assets and customer contracts in AL, FL, GA, LA, MS, and SC. Issuers expect a $75.0M variable funding note facility with delayed draw subject to leverage tests. Proceeds are intended for general corporate purposes, possibly success-based capex and/or repayment of outstanding debt. Notes offered under Rule 144A and Regulation S; not registered under the Securities Act.

Positive

• Securitization size of $250.0M
• Weighted average coupon approximately 5.671%
• Collateral across 6 states (AL, FL, GA, LA, MS, SC)
• Expected closing on Oct 24, 2025
• Adds to total ABS program issuance of $839M
• Commitment for up to $75.0M variable funding facility

Negative

• Notes carry a weighted average interest cost of 5.671%
• Assets serving as collateral will be encumbered in the securitization
• Variable funding draws subject to leverage tests and customary conditions
• Securities are unregistered, limiting resale liquidity in the U.S.

Insights

Structured Finance Analyst

Uniti priced a $250M secured fiber ABS with a weighted coupon ~5.671%, closing expected Oct 24, 2025.

The deal issues $250,000,000 of term notes across three tranches secured by fiber assets and customer contracts in six states, with an anticipated repayment in Jan 2031. The Issuers also expect a $75,000,000 delayed-draw variable funding note facility governed by the same indenture. Proceeds will fund general corporate needs, including success-based capital spending and/or debt repayment.

This transaction increases available secured financing and extends term liquidity without equity dilution. Key dependencies include successful close on Oct 24, 2025, compliance with the indenture leverage tests for the delayed draw facility, and asset performance supporting pledged cash flows. Watch the company’s disclosure of net proceeds use and any changes to secured vs. unsecured debt stacks over the next 12–18 months.

Brings Uniti’s Total ABS Program Issuance to $839 Million

LITTLE ROCK, Ark., Oct. 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 priced their offering of $250,000,000 aggregate principal amount of secured fiber network revenue term notes, consisting of $180,000,000 5.177% Series 2025-2, Class A-2 term notes, $28,200,000 5.621% Series 2025-2, Class B term notes and $41,800,000 7.834% Series 2025-2, Class C term notes, each with an anticipated repayment date in January 2031 (collectively, the “Notes”). Collectively, the Notes have a weighted average coupon rate of approximately 5.671%. The Notes will be secured by certain fiber network assets and related customer contracts in the States of Alabama, Florida, Georgia, Louisiana, Mississippi and South Carolina. The offering is expected to close on October 24, 2025.

In connection with the closing of the offering of the Notes, the Issuers expect to enter into a commitment for a $75,000,000 variable funding note facility with a delayed draw feature, subject to leverage tests and other customary drawing conditions. The variable funding notes will be governed by the same indenture that will govern the Notes.

Uniti intends to use the net proceeds of the offering of the Notes for general corporate purposes, which may include success-based capital expenditures 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 were 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

Uniti is a premier insurgent fiber provider dedicated to enabling mission-critical connectivity across the United States. We build, operate, and deliver fast and reliable communications services, empowering more than a million consumers and businesses in the digital economy. Our broad portfolio of services is offered through a suite of brands: Uniti Wholesale, Kinetic, Uniti Fiber, and Uniti Solutions.

FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on assumptions with respect to the future and management’s current expectations, involve certain risks and uncertainties, and are not guarantees. These forward-looking statements include, but are not limited to, statements regarding the offering of the Notes and use of proceeds therefrom. The words “anticipates,” “believes,” “could,” “estimates,” “expects,” “intends,” “may,” “plans,” “projects,” “will,” “would,” “predicts” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. The Company may not actually achieve the plans, intentions or expectations disclosed in its forward-looking statements, and you should not place undue reliance on the forward-looking statements. Future results may differ materially from the plans, intentions and expectations disclosed in the forward-looking statements that the Company makes. These forward-looking statements involve risks and uncertainties, known and unknown, that could cause events and results to differ materially from those in the forward-looking statements, including, without limitation: unanticipated difficulties or expenditures relating to the merger of Uniti and Windstream; competition and overbuilding in consumer service areas and general competition in business markets; risks related to Uniti’s indebtedness, which could reduce funds available for business purposes and operational flexibility; rapid changes in technology, which could affect its ability to compete; risks relating to information technology system failures, network disruptions, and failure to protect, loss of, or unauthorized access to, or release of, data; risks related to various forms of regulation from the Federal Communications Commission, state regulatory commissions and other government entities and effects of unfavorable legal proceedings, government investigations, and complex and changing laws; risks inherent in the communications industry and associated with general economic conditions; and additional risks set forth in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of Uniti and its predecessor’s most recently filed periodic reports on Form 10-K and Form 10-Q and subsequent filings with the U.S. Securities and Exchange Commission as well as Uniti’s predecessor’s registration statement on Form S-4 dated February 12, 2025. The discussion of such risks is not an indication that any such risks have occurred at the time of this filing. The Company does not assume any obligation to update any forward-looking statements. 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 CONTACTS:

Paul Bullington, 251-662-1512
Senior Executive Vice President, Chief Financial Officer & Treasurer
paul.bullington@uniti.com

Bill DiTullio, 501-850-0872
Senior Vice President, Investor Relations & Treasury
bill.ditullio@uniti.com

MEDIA CONTACTS:

Scott L. Morris
Associate Director, Media & External Communications
501-580-4759
scott.l.morris@uniti.com

Brandi Stafford
Vice President, Corporate Communications
501-351-0067
brandi.stafford@uniti.com

This press release was published by a CLEAR® Verified individual.

FAQ

What did Uniti Group (UNIT) announce on October 9, 2025 about a securitization?

Uniti priced a $250M secured fiber revenue term notes offering across three classes, expected to close on Oct 24, 2025.

What are the interest rates and weighted coupon on UNIT's October 2025 notes?

The offering includes Class A-2 at 5.177%, Class B at 5.621%, Class C at 7.834% and a weighted average coupon of ~5.671%.

What collateral secures the UNIT $250M notes and where is it located?

Notes are secured by fiber network assets and customer contracts located in Alabama, Florida, Georgia, Louisiana, Mississippi, and South Carolina.

How does Uniti (UNIT) plan to use proceeds from the $250M offering?

Uniti intends to use net proceeds for general corporate purposes, which may include success-based capex and/or repayment of outstanding debt.

Is Uniti's $250M securitization registered for public resale in the U.S.?

No; the Notes are not registered under the Securities Act and were offered to qualified institutional buyers under Rule 144A and outside the U.S. under Regulation S.

What additional financing committed with the securitization did Uniti disclose?

Issuers expect a commitment for a $75M variable funding note facility with a delayed draw, subject to leverage tests and customary conditions.