Windstream Fills Commitment Cap for "Priority" Tranche of Rights Offering

Windstream 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 restructuring process, the company said.

The previously announced participation cap of USD 430 million in the priority tranche has been increased to allow additional interested holders to participate in the priority tranche on a pro rata basis.

Holders of an additional USD 667 million of first lien claims signed up to the Amended PSA and may participate in the priority tranche. This brings the total percentage of Windstream´s first lien holders supporting the Amended PSA to 94%, along with over 54% of the second lien noteholders.

Windstream has also entered into a second amendment to the Plan Support Agreement adding 72% of the Midwest Noteholders as additional parties who support Windstream´s chapter 11 plan process and the contemplated restructuring transactions.

Under the Plan, every Midwest Noteholder shall receive its pro rata share of the Midwest Notes Exit Facility Term Loans, the principal amount of which shall in no event exceed USD 100 million, plus any interest and fees due and owing under the governing indenture for the Midwest Notes and/or the Final DIP Order to the extent unpaid as of the Plan Effective Date.

As previously announced, Windstream intends to file its chapter 11 plan of reorganization, with its proposed new capital structure, with 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 voluntarily filed for Chapter 11 reorganization in the US Bankruptcy Court for the Southern District of New York on Feb. 25, 2019. Windstream is continuing to operate in the normal course during the financial restructuring process.

Windstream Holdings is a provider of advanced network communications and technology solutions. 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. Additional information is available at windstream.com or windstreamenterprise.com.