Windstream to repay $363 million debt with Communications Sales stock

By Tali Rackner

Norfolk, Va., June 21 – Windstream Holdings, Inc. will exchange an additional 14,681,071 shares of Communications Sales & Leasing, Inc.’s common stock in a debt-for-equity exchange under an agreement with its creditors, according to a press release.

The shares to be exchanged represent all of Windstream’s remaining stake in Communications Sales & Leasing and will be used to retire about $363 million of Windstream’s revolving credit facility debt and satisfy transaction expenses.

The transaction is expected to close on Friday.

Windstream also announced that it now expects cash interest expense of roughly $370 million for 2016.

Following the spinoff of Communications Sales & Leasing in April 2015, Windstream retained an estimated 20% stake in the company.

Through the combination of a debt-for-equity exchange earlier this month and this transaction, Windstream will have completed the disposition of all of its Communications Sales & Leasing shares to retire about $672 million in debt, the release said.

Windstream is a Little Rock, Ark.-based provider of communications and technology solutions.

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