Windstream focused on free cash flow, plans to access capital markets

By Lisa Kerner

Charlotte, N.C., Nov. 14 - Windstream Corp. senior vice president of financial planning treasury Bob Gunderman said the company remains focused on three goals: to improve revenue trends, to continue disciplined expense management and to pursue targeted acquisitions.

The ultimate goal, said Gunderman, is to produce free cash flow to support Windstream's $1 dividend.

Gunderman made his comments during a presentation at the Citi 2012 North American Credit Conference in New York City on Wednesday.

When asked about uses of Windstream's excess cash, Gunderman said once dividends are paid, "deleveraging is our priority."

Windstream has done acquisition financing and is "coming out" of capital expenditures financing.

In August, the company's demand for paper priced well and demand was twice what was expected, according to Gunderman.

Because the company has $1.2 billion of maturities coming due within the next several months, the conference moderator asked Gunderman about Windstream's plans to access the capital markets.

Timing, of course, is an issue, Gunderman said.

"We are very focused right now on matching the timing to not taking extra leverage with premiums that come with calling some of those instruments too early," he said, adding that the mix of secured and unsecured debt works well for the company.

Gunderman expressed confidence that Windstream "will go to the market down the road."

Windstream is a Little Rock, Ark.-based provider of advanced communications and technology solutions, including managed services and cloud computing.

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