Uniti Group Inc. Announces Pricing of Senior Notes Offering to Refinance Debt and Enhance Financial Flexibility

Uniti Group Inc. priced $600 million of 8.625% senior notes due 2032 at an 8.625% interest rate, with proceeds primarily funding the redemption of $500 million in 10.50% senior notes due 2028 and the remainder for general corporate purposes. The offering is expected to close on June 24, 2025, subject to customary conditions. This move will allow Uniti to decrease its annual interest payments and extend its debt maturity profile.

Uniti Group Inc. has priced $600 million of 8.625% senior notes due 2032, with proceeds primarily used to fund the redemption of $500 million in 10.50% senior notes due 2028 and the remainder for general corporate purposes. The offering is expected to close on June 24, 2025, subject to customary conditions. This move will allow Uniti to decrease its annual interest payments and extend its debt maturity profile.

The senior notes, which are not registered under the Securities Act of 1933, will be offered only to qualified institutional buyers under Rule 144A. The notes are guaranteed on a senior unsecured basis by Uniti and its subsidiaries, except those needing regulatory approval. The redemption of the 2028 secured notes is contingent upon the completion of one or more debt financings in an aggregate gross proceeds amount of at least $550 million.

Uniti Group Inc. is a real estate investment trust focused on acquiring and constructing mission-critical communications infrastructure, including fiber solutions. As of March 31, 2025, the company owns approximately 147,000 fiber route miles, 8.8 million fiber strand miles, and other communications real estate throughout the United States.

This move by Uniti Group Inc. indicates the company's ability to access capital markets for funding and its commitment to reducing interest expenses. However, the increase in debt load and the uncertainty surrounding the debt financings may raise concerns about the company's financial stability and ability to manage increased leverage.

References:
[1] https://www.nasdaq.com/articles/uniti-group-inc-announces-600-million-offering-senior-notes-due-2032-debt-redemption-and