Uniti Group Inc. announced the successful completion of its inaugural $589,000,000 fiber securitization notes offering. The Series 2025-1 Term Notes, with a weighted average yield of approximately 6.5% and an anticipated repayment date in April 2030, are secured by fiber network assets and customer contracts in Florida and the Gulf Coast region.
A portion of the net proceeds from this landmark transaction was used to repay and terminate Uniti's existing ABS bridge facility. The company also intends to use the remaining proceeds to fund the partial redemption of $125,000,000 aggregate principal amount of its outstanding 10.50% senior secured notes due 2028.
The redemption of the 2028 Notes is scheduled for February 14, 2025, at a price of 103% of the principal amount plus accrued interest. Paul Bullington, Uniti's CFO, stated that this transaction represents a significant step in strengthening the company's balance sheet and lowering its cost of capital.
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