Uniti subsidiaries price $250M fiber securitization notes offering

Uniti Group has successfully priced a $250 million issuance of secured revenue term notes to support its fiber network operations, with varying interest rates for Class A-2, B, and C notes.

The notes are secured by Uniti's fiber network assets and associated contracts in multiple states, with an expected closing date for the transaction on October 24, 2025.

Following the issuance, Uniti's subsidiaries plan to establish a $75 million variable funding note facility to provide additional financing, contingent on specific conditions.

Proceeds from the note offering will be used for corporate initiatives, including capital expenditures and reducing debt.

Investment Recommendation Rating: Positive Outlook

Uniti Group (NASDAQ: UNIT) recently revealed that its subsidiaries, Uniti Fiber ABS Issuer LLC and Uniti Fiber TRS Issuer LLC, have successfully priced a $250 million issuance of secured revenue term notes focused on fiber network operations.

This offering is comprised of $180 million in Class A-2 notes bearing an interest rate of 5.177%, $28.2 million in Class B notes at a rate of 5.621%, and $41.8 million in Class C notes with a 7.834% interest rate. All notes are due in January 2031, yielding an overall weighted average coupon rate of approximately 5.671%.

These notes are backed by Uniti’s fiber network assets along with associated customer contracts in key markets including Alabama, Florida, Georgia, Louisiana, Mississippi, and South Carolina. The transaction is anticipated to be finalized on October 24, 2025.

After the closing, Uniti’s subsidiaries plan to establish a variable funding note facility totaling $75 million, which will include a delayed draw component, contingent on specific leverage and funding conditions.

The funds raised from this offering will be allocated towards various corporate initiatives, encompassing capital expenditures and debt reduction efforts.