Uniti Group Inc. (UNIT) completed a private placement of $500 million in 8.625% senior unsecured notes due 2032, issued by Uniti Services LLC, Uniti Fiber Holdings Inc., Uniti Group Finance 2019 Inc., and CSL Capital, LLC. The notes are guaranteed on a senior unsecured basis by Uniti and its parent entities and are offered exclusively to qualified institutional buyers under Rule 144A and to non‑U.S. persons in offshore transactions under Regulation S, with no registration under the Securities Act of 1933.
Proceeds from the offering will be used to repay borrowings under Uniti Services’ senior secured first‑lien term loan facility that matures in 2031 and to cover related fees and expenses. The refinancing is intended to strengthen Uniti’s balance sheet, reduce debt‑service costs, and free capital for continued investment in its fiber network and wholesale services.
The transaction follows Uniti’s August 2025 merger with Windstream, which created a combined entity positioned to become a leading insurgent fiber provider. The company’s debt load remains substantial—approximately $9.87 billion—with a current ratio of 0.82 and an interest‑coverage ratio of 1.03, underscoring the importance of refinancing to improve liquidity and debt maturity profiles.
Uniti’s strategic focus is on expanding its fiber footprint, targeting 3.5 million homes by 2029 and positioning fiber revenue to surpass legacy services by the end of 2025. The new notes provide the necessary capital to accelerate this build‑out while supporting wholesale service growth, aligning with the company’s long‑term network expansion goals.
The coupon rate of 8.625% matches the rate on a $600 million senior note issued in June 2025, indicating that market conditions for Uniti’s debt remain favorable and that the company is maintaining a consistent cost of capital across its financing activities.
By issuing these notes, Uniti demonstrates a proactive approach to debt management and a commitment to sustaining momentum in its fiber deployment strategy, positioning the company for continued growth in a competitive high‑speed internet market.
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