Windstream has announced that it has entered into a Plan Support Agreement (the “PSA”) with its first lien creditors regarding the main terms of a comprehensive financial restructuring, the company said.
The company also announced it has reached a settlement agreement with Uniti Group Inc. to resolve the pending litigation between the two companies.
The PSA will provide for, among other things: (1) a substantial reduction of the company´s existing funded debt by more than USD 4 billion, (2) a substantial reduction of the company´s annual debt service obligations, and (3) access to exit financing to allow Windstream to pursue its strategic goals after emergence from Chapter 11.
Windstream plans 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.
As part of the Uniti settlement agreement, Uniti has agreed to invest up to USD 1.75 billion in network investments for Windstream through 2030. Uniti also has agreed to pay Windstream approximately USD 490 million and to purchase certain unused and underutilized fiber assets from Windstream for an additional USD 285 million, which currently generate approximately USD 29 million in annual OIBDAR.
Copies of the PSA and Uniti settlement agreement may be obtained free of charge by visiting the website of Kurtzman Carson Consultants LLC at http://www.kccllc.net/windstream.
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.