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Windstream has taken another step forward with its real estate investment trust (REIT) structure by announcing that it will retain 19.9 percent of the shares in the REIT and distribute the remaining 80.1 percent to Windstream stockholders.
The telco said that the retained shares will be sold opportunistically during a 12-month period following the spinoff, subject to market conditions, with the net proceeds used to retire debt.
"This refined structure allows Windstream to reach our leverage goals faster to strengthen our competitive position, which we believe is appropriate and prudent given the fast changing telecom industry and rapidly evolving customer needs," said Windstream's President and CEO Tony Thomas in a release. "By improving Windstream's credit profile, the REIT benefits from having a financially stronger anchor tenant...