Uniti Group Inc. Announces Completion of New ABS Bridge Facility and Recent Asset Sales

LITTLE ROCK, Ark., Feb. 26, 2024 (GLOBE NEWSWIRE) -- Uniti Group Inc. (“Uniti” or the “Company”) (Nasdaq: UNIT) announced today that Uniti Fiber Bridge Borrower LLC ( the “ABS Borrower”), an indirect, bankruptcy remote subsidiary of the Company, has entered into a Bridge Loan and Security Agreement for up to $350 million of borrowings pursuant to a multi-draw term loan facility (the “Facility”).

Borrowings under the Facility will bear interest at an initial rate equal to Term SOFR for the applicable interest period plus an applicable margin of 3.75%, subject to customary step-ups in the applicable margin based on how long the Facility remains outstanding.   The ABS Borrower intends to cap Term SOFR for the duration of the Facility pursuant to an interest rate protection agreement. The Facility will mature 18 months from the initial draw date and is subject to customary covenants.

The ABS Borrower intends to refinance the Facility in full with proceeds from a long-term ABS facility secured primarily by certain Uniti Fiber network assets.

“We are excited to announce this new ABS bridge facility that not only helps bolster our liquidity in the near-term, but also provides access to an attractive new source of long-term capital through a permanent ABS solution that is expected to follow,” commented Senior Vice President, Chief Financial Officer & Treasurer, Paul Bullington.

Barclays Bank PLC acted as sole structuring agent, lead left arranger and facility agent on the transaction. Deutsche Bank AG New York Branch and Citibank, N.A. acted as co-lead arrangers. Wilmington Trust, National Association is acting as administrative agent.

RECENT ASSET SALES

Uniti also announced today multiple asset sales that it recently completed. First, Uniti sold its remaining investment interest in the fiber network operated by Bluebird Network LLC. In addition, Uniti sold to CableSouth Media III, LLC (“SwyftFiber”) the fiber and other network assets previously leased to SwyftFiber since its 2018 sale leaseback transaction with Uniti. As part of the agreement, Uniti will continue to have access to certain strands within the SwyftFiber network at zero-cost. Finally, Uniti recently completed the sale of essentially all of its remaining wireless towers to CTI Towers, Inc., a portfolio company of Palistar Capital LP.