Bullish indicating open at $55-$60, IPO prices at $37
LITTLE ROCK, Ark. – Uniti Group Inc. (NASDAQ:UNIT), a real estate investment trust (REIT) focused on the acquisition and construction of communications infrastructure, announced today its plan to offer $600 million in senior notes due in 2032. The company, currently valued at $1.07 billion in market capitalization, maintains a substantial EBITDA of $889.4 million but operates with a significant debt burden according to InvestingPro analysis. The offering, subject to market and other conditions, involves Uniti Group LP, Uniti Fiber Holdings Inc., Uniti Group Finance 2019 Inc., and CSL Capital, LLC, collectively referred to as the issuers.
The senior notes will be backed by guarantees from Uniti and its subsidiaries that are also guarantors under the company’s senior secured credit facility and existing notes, with certain regulatory approvals pending for some subsidiaries. The proceeds from the offering are earmarked for the partial redemption of $500 million of the company’s 10.50% senior notes due 2028, including premiums, fees, and expenses related to the redemption. The redemption is scheduled for June 24, 2025, and the notice issued today is contingent upon securing at least $550 million in debt financing.
The remaining proceeds from the notes offering are intended for general corporate purposes. These senior notes will not be registered under the Securities Act of 1933 and will be offered only to qualified institutional buyers and to non-U.S. persons outside the United States.
Uniti, which owns approximately 147,000 fiber route miles and 8.8 million fiber strand miles across the United States, has stated that this press release does not constitute an offer to sell the securities and that the offering will not be valid in any state or jurisdiction where it would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction.
This announcement follows Uniti’s forward-looking statements disclaimer, which highlights that actual results could materially differ from those projected due to various risks and uncertainties. The company also emphasizes that this press release is based on a press release statement and does not serve as a notice of redemption for the 2028 secured notes.
Investors and interested parties are advised to consider the risks detailed in Uniti’s filings with the U.S. Securities and Exchange Commission, which outline factors that could affect the company’s operations and financial outlook.
In other recent news, American Tower has maintained its positive outlook, with TD Cowen analysts reaffirming a Buy rating and setting a price target of $241.00. The company has expressed confidence in achieving a long-term growth rate of 5%, supported by strong enterprise demand and new leasing guidance for 2025 between $165-170 million. American Tower anticipates organic growth of approximately 4.3% in 2025, with plans to increase this to 5% in subsequent years. Meanwhile, Uniti Group Inc. reported first-quarter earnings that fell short of analyst expectations, with adjusted earnings per share at $0.05, missing the consensus estimate of $0.09. Revenue also came in below projections at $293.9 million, though it marked a 4% year-over-year increase in core recurring strategic fiber revenue. Citi analysts have reinstated a Neutral rating on Uniti Group stock with a $5.30 price target, highlighting the upcoming merger with Windstream as a strategic move. The merger, expected to close in the second half of 2025, is anticipated to enhance Uniti’s investment capabilities despite the company not expecting to generate free cash flow until 2030. Additionally, Uniti shareholders recently approved the merger with Windstream, which is seen as creating a strong foundation for future growth in the communications infrastructure space.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.