By Paul A. Harris
Portland, Ore., Sept. 28 – Uniti Group LP priced a $700 million issue of 8.25-year senior notes (Caa2/CCC/B) at par to yield 6% in a Tuesday drive-by, according to market sources.
The yield printed in the middle of yield talk in the 6% area but at the tight end of the 6% to 6¼% initial guidance.
Citigroup Global Markets Inc. was the left bookrunner. Joint bookrunners were 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.
The notes were sold via issuers Uniti Group LP, 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.
| Issuers: | Uniti Group LP, Uniti Fiber Holdings Inc., Uniti Group Finance 2019 Inc. and CSL Capital, LLC
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| Amount: | $700 million
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| Maturity: | Jan. 15, 2030
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| Securities: | Senior notes
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| Left bookrunner: | Citigroup Global Markets Inc.
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| Joint bookrunners: | 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
|
| Coupon: | 6%
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| Price: | Par
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| Yield: | 6%
|
| Spread: | 467 bps
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| First call: | Jan. 15, 2025 103
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| Trade date: | Sept. 28
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| Settlement date: | Oct. 13
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| Ratings: | Moody's: Caa2
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| S&P: CCC
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| Fitch: B
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| Distribution: | Rule 144A and Regulation S for life
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| Price talk: | 6% area
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| Marketing: | Roadshow
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