Uniti Group driving by with $700 million of 8.25-year senior notes; initial talk 6%-6¼%

By Paul A. Harris

Portland, Ore., Sept. 28 – Uniti Group LP plans to price a $700 million offering of senior notes due 2030 (expected ratings Caa2/CCC) in a Tuesday drive-by trailing a conference call with investors, according to market sources.

Initial guidance has the notes coming to yield 6% to 6¼%, a trader said.

Citigroup Global Markets Inc. is the left bookrunner. J.P. Morgan Securities LLC, BofA Securities Inc., Barclays, Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, RBC Capital Markets LLC and TD Securities (USA) LLC are the joint bookrunners.

The Rule 144A and Regulation S for life 8.25-year notes become callable after 3.25 years at par plus 50% of the coupon. They feature a 40% equity clawback at par plus the full coupon during the non-call period and have a 101% poison put.

The co-issuers are Uniti Fiber Holdings Inc., Uniti Group Finance 2019 Inc. and CSL Capital, LLC.

The Little Rock, Ark.-based telecommunications infrastructure company plans to use the proceeds to redeem its 7 1/8% senior notes due 2024, with the remaining proceeds to prepay obligations under the settlement agreement with Windstream Holdings, Inc., Windstream Holdings II, LLC, and its subsidiaries in connection with Windstream's emergence from bankruptcy.

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