New User:

-or-
Username:
Password:
Forgot your password?

Stock Market & Financial Investment News

News Breaks
July 29, 2014
07:14 EDTWINWindstream to spin off assets into publicly traded REIT
Windstream announced plans to spin off certain telecommunications network assets into an independent, publicly traded REIT. The transaction will enable Windstream to accelerate network investments, provide enhanced services to customers and maximize shareholder value. The transaction will allow the REIT, which will own Windstream's existing fiber and copper network and other fixed real estate assets, to expand its network and diversify its assets through acquisitions. The company's board of directors approved the plan following the receipt of a favorable private letter ruling from the Internal Revenue Service.The tax-free spinoff will enable Windstream to realize significant financial flexibility by lowering debt by approximately $3.2B and increasing free cash flow to accelerate broadband investments, transition faster to an IP network and pursue additional growth opportunities to better serve customers. As a result of the transaction, Windstream will offer faster broadband speeds and more robust performance to consumers. The company said it would expand availability of 10 Mbps Internet service to more than 80% of its customers by 2018. It also said it would more than double the availability of 24 Mbps Internet service by 2018, expanding to more than 30 percent of its customers. Under the transaction, Windstream will spin off certain assets, including its fiber and copper networks and other real estate, as a REIT, which will lease use of the assets to Windstream through a long-term triple-net exclusive lease with an initial estimated rent payment of $650M per year. Windstream will operate and maintain the assets and deliver advanced communications and technology services to consumers and businesses. Customers will see no change in their rates, scope or terms of service as a result of the transaction. Windstream will continue to have sole responsibility for meeting its existing regulatory obligations following the creation of the REIT. The REIT will focus on expanding and diversifying its assets and tenants through future acquisitions. Windstream anticipates that the REIT will raise approximately $3.5B in new debt, which will be used to repay existing Windstream debt to effect the transaction. Windstream expects to retire approximately $3.2B of debt as part of the transaction, resulting in the company deleveraging to 3.3 times debt to adjusted operating income before depreciation and amortization immediately at closing. The company's enhanced leverage profile and improved discretionary free cash flow will enable Windstream to invest more capital in strategic initiatives, better positioning Windstream for long-term growth. The transaction will not result in significant operational changes at Windstream. The REIT will have approximately 25 employees. Tony Thomas, Windstream's CFO, will become CEO of the REIT. Francis X. "Skip" Frantz, a Windstream director, will serve as chairman of the REIT's board. The REIT will be positioned to provide an attractive dividend to shareholders and grow revenue through lease escalation, capital investment and acquisitions.
News For WIN From The Last 14 Days
Sign up for a free trial to see the rest of the stories you've been missing.
December 18, 2014
07:16 EDTWINWindstream provides update on REIT spinoff
Windstream provided an update on its planned REIT spinoff. Windstream announced it is refining the transaction structure in certain respects to benefit both Windstream and the REIT. Windstream now expects to retain 19.9% of the shares in the REIT and distribute the remaining 80.1% to Windstream stockholders. The retained shares will be sold opportunistically during a 12-month period following the spinoff, subject to market conditions, with the net proceeds used to retire debt.
December 12, 2014
10:41 EDTWINHigh option volume stocks:
Subscribe for More Information
07:02 EDTWINWindstream names Bob Gunderman as CFO
Windstream announced that Bob Gunderman has been named CFO for the company, effective immediately. Gunderman has been serving as interim CFO since Oct. 1. He will retain his current treasury duties while the company conducts a search for a permanent treasurer.
December 11, 2014
17:01 EDTWINWindstream appoints Tony Thomas as CEO
Windstream Holdings announced that Tony Thomas has been appointed president and CEO and a director of Windstream, effective immediately. Thomas succeeds Jeff Gardner, the company's current president and CEO, who will stay on as senior adviser to the CEO and as a member of the board through Feb. 1, 2015, to ensure an orderly transition. Thomas has principally served as Windstream's CFO over the past eight years and most recently as the company's president of real estate investment trust operations.

Sign up for a free trial to see the rest of the stories you've been missing.

I agree to the theflyonthewall.com disclaimer & terms of use