Uniti Group Inc. Completes Strategic Transaction with Everstream

Rhea-AI Summary

Uniti Group Inc. (Nasdaq: UNIT) has finalized a strategic transaction with Everstream Solutions, initially announced on November 9, 2020. This transaction includes two 20-year IRU lease agreements related to Uniti-owned fiber and the sale of a portion of Uniti Fiber's Northeast operations, alongside specific dark fiber IRU customer contracts linked to the Windstream settlement. Uniti received approximately $135 million in upfront cash and will earn about $3 million annually over the lease term, subject to a 2% annual increase.

Positive

• Received approximately $135 million in cash consideration.
• Secured two 20-year IRU lease agreements with Everstream.
• Annual fee income expected to be around $3 million for 20 years with a 2% annual escalator.

Negative

• None.

LITTLE ROCK, Ark., June 01, 2021 (GLOBE NEWSWIRE) -- Uniti Group Inc. (“Uniti”) (Nasdaq: UNIT) announced today that it has completed its previously announced strategic transaction with Everstream Solutions LLC (“Everstream”). As part of the transaction that was initially announced on November 9, 2020, Uniti entered into two 20 year IRU lease agreements with Everstream on Uniti-owned fiber. In addition, Uniti sold to Everstream a portion of Uniti Fiber’s Northeast operations and certain dark fiber IRU customer contracts acquired as part of the Windstream settlement.

Total cash consideration to Uniti, including upfront IRU payments, was approximately $135 million. In addition to the upfront proceeds, Uniti will receive fees of approximately $3 million annually from Everstream over the initial 20 year term of the IRU lease agreements, subject to an annual escalator of 2%.

ABOUT UNITI

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 wireless infrastructure solutions for the communications industry. As of March 31, 2021, Uniti owns over 125,000 fiber route miles, approximately 7.0 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.

INVESTOR AND MEDIA CONTACTS:

Bill DiTullio, 501-850-0872
Vice President, Finance and Investor Relations
bill.ditullio@uniti.com

FAQ

What is the recent strategic transaction announced by Uniti Group?

Uniti Group completed a strategic transaction with Everstream Solutions involving two 20-year IRU lease agreements and the sale of part of its Northeast operations.

What financial benefits did Uniti receive from the Everstream deal?

Uniti received approximately $135 million in upfront cash and will earn about $3 million annually over the 20-year lease term.

When was the Uniti and Everstream transaction originally announced?

The transaction was initially announced on November 9, 2020.

What are IRU lease agreements?

IRU (Indefeasible Rights of Use) lease agreements allow one party to use a specified amount of fiber capacity owned by another party for a set period.

What is Uniti Group's stock symbol?

The stock symbol for Uniti Group is UNIT.