Windstream Debt

I was looking at Windstream's debt overview on their page at http://http://investor.windstream.com/debt-overview ... it doesn't look promising. S&P credit rating on the Senior Unsecured Dept is a 'C'.. translated from the S&P page that means... "An obligation rated 'C' is currently highly vulnerable to nonpayment, and the obligation is expected to have lower relative seniority or lower ultimate recovery compared with obligations that are rated higher." That's one mark above a 'D' rating of DEFAULT.

So .. from Windstreams own page that was last updated March 31, 2018.

Senior Secured Debt

Bank Credit Facility - Variable rate due 2021... 1.19 billion

Bank Credit Facility - Variable rate due 2024 ... 573 million

Revolver - Variable Rate due 2020 .. 1.028 Billion

Windstream Holdings - 6.75% Note rate .. due 2028 ... 100 Million

Total of Secured Debt is 2.89 Billion

Senior Unsecured Debt

Windstream Services - 7.75% Notes due 2020 .. 493 Million

Windstream Services - 7.75% Notes due 2021 .. 89 Million

Windstream Services - 7.50% Notes due 2022 .. 42 Million

Windstream Services - 7.50% Notes due 2023 .. 120 Million

Windstream Services - 6.375% Notes due 2023 .. 1.148 Billion

Windstream Services - 8.75% Notes due 2024 .. 684 Million

Windstream Services - 8.625% Notes due 2025 .. 600 Million

Total Unsecured Debt .. 3.176 Billion

Total Secured and Unsecured is $6.066 Billion

Total Long Term including maturities is $6.052 Billion

I fail to see the light at the end of the tunnel by looking at this. Can't imagine the updated report will look any better. Stock continues to drop. Sure they can kick the can down the road with the 2020 Exchange Offer swapping its 7.75% senior notes due 2020 (the “2020 Notes”) for new 9.375% senior second lien notes due 2024 but what does this accomplish? There is a serious cash flow problem that isn't being addressed with the layoffs. The trim must take place from the top down rather than the bottom up. Waste needed to be addressed years ago with the doubling up of KDL & McLeod facilities in the mid-west. There are still many properties on separate floors or a block from each other that could have been merged to save cash and was never done. Now it's too late since there is no short money to accomplish the task and save in the long term. The acquisition of Earthlink created more of the same issues. the thought of rebranding the company failed before it was out of the gate. Millions dropped in Fixed Wireless in markets that there was no chance of success. And don't even get me started on SD-WAN.

So... does anyone see how this could end in anything other than a bankruptcy and liquidation of assets? I don't think TT has a plan of anything other than to ride it to the end.

Your comments are welcome.

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Agreed Garner is who go the sh-- ball rolling. A simple way to think of the goodwill item in the balance sheet is "how much Windstream has calculated they overpaid for acquisitions". Prior to spinning off the REIT they had 4.2b in Goodwill. That is a whole lot of debt that was accumulated for them to overpay for companies.

The CLEC business is a losers game. Margins are always tight and you are at the mercy of the ILECs.

If you had a line item breakdown of that debt as to what it's capital expenditure was you would find it mostly as M&A. You had an executive leadership team that would not even entertain the view of those in the field, noc, customer facing, or engineering as to what a mess it is. They we're only listening to the yes men they put in place at the c-level and middle management who are a total clown show. A group of Mikey mouse MBA fools who couldn't tell you half of what the f_(k we do here. These iditots clowns barked how everything was awesome and s_(ked so much a$$ every chance they got the leadership really didn't even have the full picture before entering another diastierous M&A. That being ELink. Before you ELinkers get on here and start spitting on me... Windstream clocked a very gross good faith write down on the 2017 books. This was the amount they overpaid for that stinker. ELink is a pile of dog$hit, much like Paetec was.

I say they did or they were or was because.. it's gone folks. We didn't celebrate Windstreams anniversary last week we morned it's funeral. It's like grandma in hospice, just watching and waiting for the end to come.

The only chance of saving it is to invent a time machine go back and slap the $hit out of Jeff Garner for purchasing Nuvox and deciding Windstream needed to enter the CLEC Enterprise game because that's were the money is...

Or better yet go back even further and slap the $hit out of Scot Ford for deciding to spin off wireline and for selling Alltel to the flipping vultures.

Oh I don’t Know, 7 and a half years to make 6 billion dollars (net) to just break even and not default on our loans, well if we can avoid default in October 2020 first. We just need a really good idea, and a lot of adjectives to describe it! Any thoughts? Cmon people, no wrong answers, this is a safe place

Thread regarding Windstream Corp. layoffs

Windstream Debt

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