Windstream To Exchange Remaining Half Of CS&L Stake To Reduce Debt

(RTTNews) - Windstream Holdings Inc. (WIN) said it has agreed to exchange an additional 14.68 million shares of Communications Sales & Leasing, or CS&L common stock with its creditors in a debt-for-equity exchange.

The CS&L shares to be exchanged represent all of Windstream's remaining retained stake in CS&L. It will be used to retire about $363 million in Windstream's revolving credit facility debt and satisfy transaction expenses. The transaction is expected to close on June 24, 2016.

Following the spinoff of CS&L in April 2015, Windstream retained an about 20 percent equity stake in CS&L. Windstream noted that through the combination of a debt-for-equity exchange earlier this month and this transaction, it will have completed the disposition of all of its CS&L shares to retire about $672 million in debt.

Windstream now expects cash interest expense of approximately $370 million for 2016.

"This transaction represents a noteworthy milestone for Windstream, concluding a process that enabled the company to optimize the balance sheet by lowering debt by a total of approximately $3.9 billion and reducing cash interest expense," said Bob Gunderman, Windstream chief financial officer.