Uniti climbs as litigation settlement reached; GTT declines after posting Q4 loss

By James McCandless

San Antonio, March 2 – The market, including distressed tranches, seemed back to normal as last week’s significant losses were partially erased by a recovery.

Uniti Group Inc.’s notes climbed after the company announced a settlement to end its litigation with Windstream Holdings, Inc.

The 7 7/8% senior secured notes due 2025 picked up 2½ points to close at 106 bid. The 8¼% senior notes due 2023 rose 4 points to close at 97 bid.

By the close, the two tranches combined to see about $55 million changing hands.

On Monday morning, the Little Rock, Ark.-based real estate investment trust reached a settlement with large customer and telecom name Windstream, Prospect News reported.

As part of the agreement, the company will invest up to $1.75 billion in growth capital improvements, consisting of long-term fiber and related assets in certain Windstream ILEC and CLEC properties over the initial term of new leases.

A year after the first investment, the annual base rent payable by Windstream will increase by an amount equal to 8% of the new investment, subject to a 0.5% annual escalator.

Meanwhile, in telecom, GTT Communications Inc.’s issues declined in reaction to the company’s weak Q4 earnings report.

The 7 7/8% senior notes due 2024 shaved off ½ point to close at 76¼ bid.

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