Uniti Group subsidiary prices $1.4B 7.50% senior secured notes due 2033, upsizing by $500M

Windstream Services is offering $1.4 billion in senior secured notes at a fixed interest rate of 7.50%, increasing from an initial plan of $900 million, with the issuance expected to close on October 6, 2025.

The company is also looking to secure up to $1 billion in incremental term loans under its legacy credit agreement, with an interest rate of Term SOFR plus 4.00%, while extending maturity dates for certain revolving credit facilities to December 30, 2027.

The proceeds from the notes and loans will be primarily used to redeem existing 10.50% senior secured notes due in 2028, with any excess funds allocated for general corporate purposes.

Investment Recommendation: Windstream Services Senior Secured Notes Offering

Windstream Services, a division of Uniti Group (NASDAQ: UNIT), has announced a new offering of senior secured notes totaling $1.4 billion, which is an increase from the previously reported $900 million. These notes feature a fixed interest rate of 7.50% and are due in 2033. They will be issued at par value, with guarantees from Uniti Group, Uniti Group LLC, and qualifying subsidiaries as part of both senior secured and unsecured guarantees. The closing of this offering is anticipated for October 6, 2025.

In addition, Windstream is seeking to secure up to $1 billion in incremental term loans under the legacy Windstream credit agreement, which will carry an interest rate of Term SOFR plus 4.00% per annum. The maturity dates for revolving credit facilities associated with legacy Uniti and Windstream agreements are expected to be extended until December 30, 2027.

The net proceeds generated from the issuance of the new notes and term loans will primarily be allocated towards the complete redemption of existing 10.50% senior secured notes due in 2028, including any applicable premiums, fees, and accrued interest. Any surplus funds will be designated for general corporate objectives.

Source: SEC Filing