Uniti To Merge With Windstream To Form Fiber Provider

(RTTNews) - Uniti Group Inc. (UNIT), a real estate investment trust, announced on Friday that it inked a deal to merge with Windstream Holdings II, LLC.

Under the terms, Windstream shareholders will receive $425 million in cash, $575 million of preferred equity, and around 38 percent of the combined company.

Post-merger, Windstream shareholders will additionally receive non-voting warrants to acquire up to 6.9 percent of shares.

Uniti expects to fund the $425 million of cash consideration from operations, debt or future capital markets transactions.

Post transaction, Uniti shareholders will own around 62 percent and Windstream shareholders approximately 38 percent of the combined company.

Kenny Gunderman, CEO of Uniti said, "As a combined company, we will continue our disciplined growth trajectory while expanding FTTH buildouts and significantly improving our overall financial profile. The demand for fiber broadband has never been greater, and Uniti is now expanding its reach into FTTH with an attractive scaled platform."

The merger will combine Uniti's national wholesale owned fiber network with Windstream's fiber-to-the-home or FTTH business to create a premieum fiber provider in the U.S. to serve initially over 1.1 million customers and 1.5 million existing homes passed with a particularly strong presence in the Midwest and Southeast.

The combined company will be led by Gunderman, and Paul Bullington, Uniti's CFO.

The new firm will continue to operate as Uniti under the ticker "UNIT" and be headquartered in Little Rock, Arkansas.