Uniti Group Inc. Announces Effectiveness of Settlement of Litigation with Windstream
September 21 2020 - 6:15PM
Uniti Group Inc. (“Uniti”) (Nasdaq: UNIT) announced today the
effectiveness of the previously announced settlement with
Windstream Holdings Inc. and certain of its subsidiaries
(collectively, “Windstream”), which occurred concurrently with
Windstream’s emergence from bankruptcy (the “Settlement”). The
effectiveness of the Settlement resolves any and all claims and
causes of action that have been or may be asserted by Uniti and
Windstream, including all litigation brought by Windstream and
certain of its creditors during Windstream’s bankruptcy
proceedings.
Kenny Gunderman, President and Chief Executive
Officer of Uniti, commented, “We are pleased that our previously
announced settlement agreement with Windstream is now effective,
and that Windstream has fully emerged from bankruptcy with a
significantly deleveraged capital structure. This settlement
achieves a mutually beneficial outcome for both Uniti and
Windstream, while providing substantial strategic value for Uniti,
including expanding its national fiber footprint and leasable
capacity to third parties by approximately 90%. The settlement also
provides significant credit enhancements for Uniti through the new
bifurcated master leases, and the financial covenants and
guarantees that govern those leases.”
For further details regarding the settlement,
please refer to the 8-K filing being filed with the U.S. Securities
and Exchange Commission.
ABOUT UNITI
Uniti, an internally managed real estate
investment trust, is engaged in the acquisition and construction of
mission critical communications infrastructure, and is a leading
provider of wireless infrastructure solutions for the
communications industry. As of June 30, 2020, Uniti owns 6.5
million fiber strand miles and other communications real estate
throughout the United States. Additional information about Uniti
can be found on its website at www.uniti.com.
FORWARD-LOOKING STATEMENTS
Certain statements in this press release may
constitute forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995, as amended from
time to time. Those forward-looking statements include all
statements that are not historical statements of fact including
those regarding the results of the settlement and its impact on
Uniti.
Words such as “anticipate(s),” “expect(s),”
“intend(s),” “estimate(s),” “foresee(s),” “plan(s),” “believe(s),”
“may,” “will,” “would,” “could,” “should,” “seek(s)” and similar
expressions, or the negative of these terms, are intended to
identify such forward-looking statements. These statements are
based on current expectations and beliefs and are subject to a
number of risks and uncertainties that could lead to actual results
differing materially from those projected, forecasted or expected.
Although Uniti believes that the assumptions underlying the
forward-looking statements are reasonable, we can give no assurance
that our expectations will be attained. Factors which could
materially alter our expectations include, but are not limited to,
the future prospects of Windstream; changes in the accounting
treatment of our settlement with Windstream; the ability and
willingness of our customers to meet and/or perform their
obligations under any contractual arrangements entered into with
us, including master lease arrangements; the ability of our
customers to comply with laws, rules and regulations in the
operation of the assets we lease to them; the ability and
willingness of our customers to renew their leases with us upon
their expiration, and the ability to reposition our properties on
the same or better terms in the event of nonrenewal or in the event
we replace an existing tenant; the adverse impact of litigation
affecting us or our customers; our ability to renew, extend or
obtain contracts with significant customers (including customers of
the businesses we acquire); the availability of and our ability to
identify suitable acquisition opportunities and our ability to
acquire and lease the respective properties on favorable terms; the
risk that we fail to fully realize the potential benefits of
acquisitions or have difficulty integrating acquired companies; our
ability to generate sufficient cash flows to service our
outstanding indebtedness; our ability to access debt and equity
capital markets; the impact on our business or the business of our
customers as a result of credit rating downgrades and fluctuating
interest rates; our ability to retain our key management personnel;
our ability to qualify or maintain our status as a real estate
investment trust (“REIT”); changes in the U.S. tax law and other
state, federal or local laws, whether or not specific to REITs;
covenants in our debt agreements that may limit our operational
flexibility; our expectations regarding the effect of the COVID-19
pandemic on our results of operations and financial condition;
other risks inherent in the communications industry and in the
ownership of communications distribution systems, including
potential liability relating to environmental matters and
illiquidity of real estate investments; and additional factors
described in our reports filed with the SEC.
Uniti expressly disclaims any obligation to
release publicly any updates or revisions to any of the
forward-looking statements set forth in this press release to
reflect any change in its expectations or any change in events,
conditions or circumstances on which any statement is based.
INVESTOR AND MEDIA CONTACTS:
Mark A. Wallace, 501-850-0866Executive Vice
President, Chief Financial Officer &
Treasurermark.wallace@uniti.com
Bill DiTullio, 501-850-0872Vice President,
Finance and Investor Relationsbill.ditullio@uniti.com
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