Uniti Group Inc. Announces Closing of Senior Secured Notes Offering and Effectiveness of Credit Agreement Amendment

About this update from Uniti Group Inc.

[{"type":"text","content":"LITTLE ROCK, Ark., Feb. 10, 2020 (GLOBE NEWSWIRE) -- Uniti Group Inc. (the “Company”, “Uniti”, or “we”) (Nasdaq: UNIT) today announced that its subsidiaries, Uniti Group LP, Uniti Fiber Holdings Inc., Uniti Group Finance 2019 Inc. and CSL Capital, LLC (together, the “Issuers”), have closed their offering of $2.25 billion aggregate principal amount of 7.875% senior secured notes due 2025 (the “notes”). The notes were issued at an issue price of 100.000%. The Issuers used the net proceeds from the offering to repay all $2.05 billion of outstanding borrowings under Uniti’s term loan facility and $156.7 million of outstanding borrowings under Uniti’s revolving credit facility (and terminated related revolving commitments in an amount equal to $157.6 million).\n In connection with the offering and the use of proceeds therefrom, the Company entered into an amendment and waiver with the lenders under its senior secured credit facilities. The amendment and waiver waives any potential default that would arise if the Company’s financial statements for 2019 include a “going concern” statement. The amendment and waiver became effective upon closing of the notes offering and the related repayment of borrowings and termination of certain revolving commitments. The notes are guaranteed on a senior unsecured basis by the Company and on a senior secured basis by each of the Company’s subsidiaries (other than the Issuers) that guarantees indebtedness under the Company’s senior secured credit facilities (the “Subsidiary Guarantors”). The notes and the subsidiary guarantees are secured by first-priority liens on substantially all of the assets of the Issuers and the Subsidiary Guarantors (subject to certain exceptions), which liens also ratably secure the Company’s existing secured notes and its senior secured credit facilities. The notes are not and will not be registered under the Securities Act of 1933, as amended (the “Securities Act”), or any state securities laws, and may not be offered or sold in the United States absent registration or an applicable exemption from registration under the Securities Act or any applicable state securities laws. The notes were offered only to persons reasonably believed to be qualified institutional buyers under Rule 144A under the Securities Act and outside the United States in compliance with Regulation S und...

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