Windstream Services, LLC and Windstream Escrow Finance Corp., subsidiaries of Windstream Holdings II, LLC, announced the pricing of $1.4 billion aggregate principal amount of additional 8.250% Senior First Lien Notes due 2031. These notes constitute a further issuance of the 8.250% Senior First Lien Notes due 2031 that were initially issued on October 4, 2024. The offering is expected to close on December 23, 2024, subject to customary closing conditions.
The Windstream Co-Issuers intend to use the net proceeds from this offering, combined with cash on hand, to fund the redemption of all $1.4 billion outstanding principal amount of Windstream’s 7.750% senior first lien notes due 2028. The redemption price is set at 101.938% of their principal amount, plus any accrued and unpaid interest.
This refinancing transaction is designed to be leverage neutral and aims to extend Windstream's overall debt maturity profile in a cash flow efficient manner. Paul Bullington, Uniti's CFO, stated that the company will continue to evaluate ways to strengthen its balance sheet by extending debt maturities and lowering interest expense, particularly for its remaining 2028 debt maturities.
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