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LITTLE ROCK - Uniti Group Inc. (NASDAQ:UNIT), a $1.39 billion market cap fiber infrastructure company with impressive gross profit margins of 85%, announced Monday it has commenced an offering of $250 million in secured fiber network revenue term notes through its bankruptcy-remote subsidiaries. According to InvestingPro data, the company maintains a healthy current ratio of 1.95, indicating strong short-term liquidity.
The notes, which have an anticipated repayment date in January 2031, will be secured by fiber network assets and related customer contracts across six southeastern states: Alabama, Florida, Georgia, Louisiana, Mississippi and South Carolina.
In addition to the term notes, the company expects to enter into a commitment for a $75 million variable funding note facility with a delayed draw feature, subject to leverage tests and other customary drawing conditions.
Uniti plans to use the net proceeds for general corporate purposes, which may include success-based capital expenditures and debt repayment, according to a press release statement.
The offering marks Uniti’s second fiber securitization in 2025. The notes will not be registered under the Securities Act of 1933 and will be offered only to qualified institutional buyers under Rule 144A and to non-U.S. persons in compliance with Regulation S.
Uniti Group describes itself as a fiber provider that builds, operates and delivers communications services across the United States, serving more than a million consumers and businesses through its brands: Uniti Wholesale, Kinetic, Uniti Fiber, and Uniti Solutions.
The transaction is subject to market conditions and other factors. The variable funding notes will be governed by the same indenture as the term notes.
In other recent news, Kinetic has completed a significant fiber-optic network project in Ruidoso, New Mexico, making high-speed internet available to approximately 8,000 homes and businesses. This development has earned Ruidoso the designation of a "Gig-Ready" community, signifying that more than 75% of the town now has access to gigabit internet service. Additionally, Kinetic has received preliminary approval for $156.6 million in federal Broadband Equity Access and Deployment (BEAD) program grants across four states. These funds are intended to expand multi-gigabit fiber connections to approximately 52,000 rural homes and businesses, with the majority of the investment directed toward Georgia.
Meanwhile, Uniti Group Inc.’s subsidiary, Windstream Services, LLC, has priced an offering of $1.4 billion in 7.50% Senior Secured Notes due 2033, which was increased by $500 million from the previously announced $900 million. The notes will be issued at 100% of face value and will be guaranteed on a senior unsecured basis by Uniti and Uniti Group LLC. In leadership news, Kinetic has appointed David Oliveira as the new executive vice president and chief revenue officer, who will oversee Sales, Product, and Go-to-Market Operations across the company’s Consumer and Business segments. Oliveira brings over 20 years of experience in the telecom and broadband industry, having previously held senior positions at Frontier Communications and Verizon.
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