Uniti Group Inc. (UNIT) completed a $960 million issuance of secured fiber‑network revenue term notes through its subsidiary, Kinetic ABS Issuer LLC. The notes are backed by residential fiber assets and customer agreements in Arkansas, Georgia, Kentucky, Ohio and Texas and are scheduled to mature in February 2031.
The proceeds will be used for general corporate purposes, including capital expenditures and debt repayment. In addition, the company will establish a $150 million variable funding note facility and a liquidity funding note facility, both governed by the same indenture, to provide flexible working capital and support the accelerated build‑out of its Kinetic consumer‑fiber network.
Uniti’s balance sheet remains heavily leveraged, with total debt of $9.87 billion and a current ratio of 0.82. The new securitization follows a series of prior financing transactions—$589 million in February 2025 and $250 million in October 2025—that have helped the company extend its maturity profile and reduce interest expense. By converting high‑yield, short‑term debt into a longer‑dated, lower‑cost instrument, Uniti is improving its cost of capital while preserving liquidity for network expansion.
The Kinetic segment, which focuses on consumer fiber‑to‑the‑home, is the primary beneficiary of the new capital. Management has set a target of passing 3.5 million homes by 2029, and the $960 million note provides the funding needed to accelerate that build‑out. The financing also supports the company’s strategy of securing long‑term lease agreements with hyperscalers and other high‑value customers, thereby creating a stable revenue stream to back the notes.
CEO Kenneth Gunderman said the transaction “strengthens Uniti’s balance sheet and gives us the flexibility to continue investing in fiber infrastructure while managing debt levels.” CFO Paul Bullington added that the securitization “extends our maturity profile and delivers substantial annual interest‑rate savings, freeing capital for future growth.”
The offering aligns with Uniti’s broader strategy of leveraging its fiber assets to secure low‑cost, long‑term financing. By converting short‑term debt into a longer‑dated instrument, the company reduces refinancing risk and positions itself to meet its aggressive network expansion goals while maintaining a disciplined capital structure.
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