Bloomberg news article:
https://finance.yahoo.com/news/windstream-uniti-discuss-crafting-swap-194714603.html
A lot of activity in Uniti stock today.
I wonder how realistic the article is.
4 replies (most recent on top)
in other words, swapping one piece of trash for another.
Might as well give it to Uniti for a cost reduction. That's fiber Windstream can't sell or market anyways might as well get it in the hands of someone who could... 100 million reduction would go nicely to more bonuses for TT and his goonsquad.
For comparison's sake, the current annual lease bill for Windstream is $659 million, so the speculated rent concession in the earlier post would result in a 15 - 25% reduction in rent if it happened.
That's the equivalent of a lot of jobs that would have to be cut otherwise.
https://www.fiercetelecom.com/telecom/windstream-and-uniti-drill-down-settling-lease-terms-bloomberg
"Bloomberg said Uniti's credit agreement provided clues to how much of a price break it could give Windstream for the master lease agreement. Uniti could drop the lease payments by $100 million to $150 million before it would violate a requirement to keep its secured leverage ratio under 5 times debt to a measure of earnings, according to Bloomberg."
"Last year, Windstream Chief Financial Officer Robert Gunderman estimated his company's dark fiber was worth $100 million to $200 million."