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LITTLE ROCK, Ark., Feb. 27, 2019 (GLOBE NEWSWIRE) -- Uniti Group Inc. (“Uniti”) (Nasdaq: UNIT) commented today on the commencement of voluntary reorganization proceedings under Chapter 11 of the U.S. Bankruptcy Code by Windstream Holdings, Inc. and all of its subsidiaries (“Windstream”) in the U.S. Bankruptcy Court for the Southern District of New York.
Windstream is Uniti’s largest customer and tenant under a master lease agreement. In a press release issued February 25, 2019, Windstream indicated it has secured $1 billion of debtor-in-possession financing, expects to continue operating in the normal course of business, and intends to pay vendors in full for all goods received and services provided to Windstream after the filing date.
Kenny Gunderman, President and Chief Executive Officer of Uniti, commented, “We continue to closely monitor Windstream’s situation, and believe it will successfully navigate through the reorganization process. We were pleased to see Windstream state its intent to continue operations in the ordinary course and pay in full its service providers. We are also encouraged by the Federal Communications Commission’s (“FCC”) recent statement regarding the importance of Windstream’s continued service to its customers, and the FCC’s focus on the importance that federal funds provided to Windstream are put to their appropriate use. We believe access by Windstream to Uniti’s network remains critical to Windstream’s operations and ability to serve those customers.”
Mr. Gunderman continued, “Uniti remains focused on the operations of each of our business segments and serving the interests of our stockholders, our employees, our customers, and our other partners.”
Uniti, an internally managed real estate investment trust, is engaged in the acquisition and construction of mission critical communications infrastructure, and is a leading provider of wireless infrastructure solutions for the communications industry. As of September 30, 2018, Uniti owns 5.4 million fiber strand miles, approximately 850 wireless towers, and other communications real estate throughout the United States and Latin America. Additional information about Uniti can be found on its website at www.uniti.com.
Certain statements in this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended from time to time. Those forward-looking statements include all statements that are not historical statements of fact, including, without limitation, those regarding the unfavorable court ruling against Windstream and subsequent commencement of voluntary reorganization proceedings under Chapter 11 of the U.S. Bankruptcy Code.
Words such as "anticipate(s)," "expect(s)," "intend(s)," “estimate(s),” “foresee(s),” "plan(s)," "believe(s)," "may," "will," "would," "could," "should," "seek(s)" and similar expressions, or the negative of these terms, are intended to identify such forward-looking statements. These statements are based on management's current expectations and beliefs and are subject to a number of risks and uncertainties that could lead to actual results differing materially from those projected, forecasted or expected. Although we believe that the assumptions underlying the forward-looking statements are reasonable, we can give no assurance that our expectations will be attained. Factors which could materially alter our expectations include, but are not limited to, the ability and willingness of our customers to meet and/or perform their obligations under any contractual arrangements entered into with us; the ability and willingness of our customers to renew their leases with us upon their expiration, and the ability to reposition our properties on the same or better terms in the event of nonrenewal or in the event we replace an existing tenant; the adverse impact of litigation affecting us or our customers; our ability to renew, extend or obtain contracts with significant customers (including customers of the businesses we acquire); the availability of and our ability to identify suitable acquisition opportunities and our ability to acquire and lease the respective properties on favorable terms; the risk that we fail to fully realize the potential benefits of acquisitions or have difficulty integrating acquired companies; our ability to generate sufficient cash flows to service our outstanding indebtedness; our ability to access debt and equity capital markets; the impact on our business or the business of our customers as a result of credit rating downgrades and fluctuating interest rates; our ability to retain our key management personnel; our ability to qualify or maintain our status as a real estate investment trust (“REIT”); changes in the U.S. tax law and other state, federal or local laws, whether or not specific to REITs; covenants in our debt agreements that may limit our operational flexibility; other risks inherent in the communications industry and in the ownership of communications distribution systems, including potential liability relating to environmental matters and illiquidity of real estate investments; the risk that the agreements relating to our pending transactions may be modified or terminated prior to closing; the risks related to satisfying the conditions to our pending transactions; and additional factors described in our reports filed with the SEC.
Uniti expressly disclaims any obligation to release publicly any updates or revisions to any of the forward-looking statements set forth in this press release to reflect any change in its expectations or any change in events, conditions or circumstances on which any statement is based.
INVESTOR AND MEDIA CONTACTS:
Mark A. Wallace, 501-850-0866
Executive Vice President, Chief Financial Officer & Treasurer
Bill DiTullio, 501-850-0872
Director, Finance and Investor Relations