(Bloomberg) -- Windstream Holdings Inc. sold a $1.3 billion loan and bond package to refinance its existing debt, securing more favorable terms after the offering gained traction among investors.
The deal for the telecommunications firm includes a $500 million seven-year term loan and $800 million of seven-year senior secured first-lien notes that are callable in three years, according to people familiar with the matter who aren’t authorized to speak publicly and asked not to be identified.
The loan sold at 4.75 percentage points above the Secured Overnight Financing Rate at a discounted price of 99.5 cents on the dollar, the people said, after initial talks called for 5.5 percentage points above the benchmark. The bonds sold with a yield of 8.25%, they added, from initial talk for around the low 9% area.
JPMorgan Chase & Co. is leading each part of the transaction. Proceeds will be used to refinance two outstanding loans due 2027 and for general corporate purposes, including investments in the firm’s network, the people said.
The deal joins a fall flurry of issuance in the debt markets, largely tied to refinancings and repricings rather than for new acquisition deals. Low-rated companies are rushing to the market ahead of the US election in November to curb any potential volatility after the Federal Reserve’s historic interest-rate cut last week lowered borrowing costs.
In May, Uniti Group Inc. announced that it had entered into a definitive agreement to merge with Windstream. The merger is expected to close in the second half of 2025 and will combine Uniti’s fiber network with Windstream’s fiber-to-the-home business, according to a press release.
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