Windstream has announced that it has entered into an amendment to its previously announced Plan Support Agreement (the “Amended PSA”) expanding the scope of participants who may participate in the “priority” tranche of the rights offering by becoming parties to the Amended PSA and supporting the company´s comprehensive financial restructuring, the company said.
The Amended PSA provides for increased access to the “priority” tranche of the contemplated rights offering to holders of first lien claims who were not previously parties to the Plan Support Agreement when it was first executed on March 2, 2020.
Holders of first lien claims that did not previously execute the Plan Support Agreement will now have until March 13, 2020 to elect to become parties to the Amended PSA, and will then be eligible to participate on a “first come, first served” basis in up to USD 51 million of the “priority” tranche of the rights offering, allowing for expanded consensus in favor of the PSA.
Only holders of up to USD 430 million in first lien claims may participate in the Amended PSA, though that cap may be increased in the sole discretion of the backstop parties in consultation with the company.
As previously announced, Windstream intends to file its chapter 11 plan of reorganization, with its proposed new capital structure, to the court for approval as soon as possible with a target of by the end of March. The company expects to emerge from restructuring mid-year, subject to timing of court and regulatory approvals.
Windstream provides data networking, core transport, security, unified communications and managed services to mid-market, enterprise and wholesale customers across the US. The company also offers broadband, entertainment and security services for consumers and small and medium-sized businesses primarily in rural areas in 18 states.