Uniti Group Prices Offering Of $300mln Of 7.50% Convertible Senior Notes Due 2027

(RTTNews) - Uniti Group Inc. (UNIT) said that it has priced its offering of $300 million aggregate principal amount of 7.50% convertible senior notes due 2027.

The company granted to the initial purchasers of the Convertible Notes an option to purchase up to an additional $45 million aggregate principal amount of the Convertible Notes during a 13-day period beginning on, and including, the first day on which the Convertible Notes are issued.

The offering is expected to settle on December 12, 2022.

The Convertible Notes will bear interest at a fixed rate of 7.50% per year, payable semiannually in arrears on June 1 and December 1 of each year, beginning on June 1, 2023. The Convertible Notes will mature on December 1, 2027, unless earlier repurchased, redeemed or converted.

The company noted that it expects to use $20.7 million of the net proceeds from the offering of the Convertible Notes to pay the cost of the capped call transactions. If the option granted to the initial purchasers to purchase additional Convertible Notes is exercised, the company intends to use a portion of the net proceeds from the sale of the additional Convertible Notes to enter into additional capped call transactions. The company intends to use the remaining net proceeds for general corporate purposes.