Uniti Group Announces $500M Offering of 8.625% Senior Notes
Uniti Group announced that its subsidiaries, Uniti Services, Uniti Fiber Holdings, Uniti Group Finance 2019 and CSL Capital, have commenced an offering of $500M aggregate principal amount of 8.625% senior notes due 2032, subject to market and other conditions. The Notes will be guaranteed on a senior unsecured basis by the Company, Uniti Group, Uniti Services' immediate parent, and each of Uniti Services' restricted subsidiaries that guarantees indebtedness under senior secured credit facilities and existing notes. Within 60 days of the issuance of the Notes, Uniti Services will file to obtain regulatory approval to enable the regulated subsidiaries to guarantee the Notes, and it will use commercially reasonable efforts to obtain such approval. Upon the guarantee of the Notes by each of the regulated subsidiaries that guarantee the Issuers' existing 8.625% senior notes due 2032, the Notes are expected to be mandatorily exchanged for 8.625% senior notes due 2032 issued as "additional notes" under the indenture dated as of June 24, 2025 among the Issuers, the guarantors party thereto and the trustee party thereto. Any such additional notes are expected to be part of the same series as the existing 8.625% senior notes due 2032 issued under the 2025 Indenture, and are expected to have the same CUSIP number as, and be fungible with, the existing 8.625% senior notes due 2032 issued under the 2025 Indenture. The Issuers intend to use the net proceeds from the offering of the Notes, together with cash on hand, to repay borrowings under Uniti Services' senior secured first lien term loan facility due 2031 and to pay related fees and expenses.
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- Network Expansion Investment: Uniti Wholesale plans a significant capital investment in 2026, adding approximately 20 new data center on-ramps and six major route upgrades, aimed at enhancing its nationwide Intelligent Converged Network (ICON) to meet the growing multi-terabit demands of the AI era.
- FastWaves™ Program Launch: The company is launching the FastWaves™ initiative to reduce delivery intervals for 100G and 400G wavelength services to less than three weeks, with Phase 1 set to activate 40 high-demand routes by March 1, further enhancing customer service experience.
- Customer Visualization Tool: Through the iconnect customer portal, clients can utilize the Route Creator tool to view available routes and place quotes and orders directly, increasing transparency in the delivery process while simplifying partner scaling across the U.S.
- Enhanced Service Commitments: The FastWaves program features competitive pricing and SLA-backed commitments, ensuring compensation if installations are not completed within three weeks, showcasing Uniti Wholesale's robust service assurance capabilities in the high-capacity transport market.

Phase 1 Activation: UNITI Group plans to activate 40 high-demand routes by March 1 as part of its Phase 1 strategy.
Phase 2 Expansion: In Q2, the company aims to add 15 more routes, further expanding its network.

- Investment Plans: UNITI is planning to make capital investments in 2026 to expand data center connectivity in the U.S.
- Infrastructure Enhancements: The investment will include the addition of 20 on-ramps and six major route upgrades.
- Complete Liquidation: Arena Capital Advisors disclosed on February 3, 2026, that it sold its entire position of 611,495 shares in Diebold Nixdorf for an estimated value of $34.9 million, indicating a shift in confidence regarding the stock.
- Portfolio Adjustment: Previously, Diebold Nixdorf represented 15% of Arena Capital's securities portfolio, and this liquidation aligns with a broader 31% reduction in the value of their disclosed holdings, reflecting a strategic repositioning.
- Market Performance: As of February 3, 2026, Diebold Nixdorf shares traded at $70.99, marking a 68.8% increase over the past year, significantly outperforming the S&P 500 by 53.4 percentage points, showcasing its strong market position.
- Investment Strategy: Arena Capital likely acquired Diebold Nixdorf at lower prices and opted to sell now to raise cash for investments in assets with better return prospects, indicating a strategic shift in their value investment approach.
- Strong Small-Cap Performance: Year-to-date in 2026, the iShares Core S&P Small-Cap ETF (IJR) has surged 10.9%, significantly outperforming the SPDR S&P 500 ETF Trust (SPY) which only rose 1.4%, indicating a potential shift in investor sentiment towards small-cap stocks after years of underperformance.
- Leading Communication Services: Uniti Group (UNIT) tops the list with a 16.09% price percentage above its 200-day simple moving average, showcasing its robust market performance and likely attracting increased investor interest in small-cap communication services.
- Notable Performers: Gray Media (GTN.A) and Sinclair (SBGI) follow closely with increases of 15.80% and 4.85%, respectively, highlighting the diversity and growth potential within the communication services sector, which may prompt investors to reassess the value of this industry.
- Market Trend Insights: The strong performance of small-cap stocks may lead investors to reconsider their portfolios, particularly in the communication services sector, which is expected to drive inflows into related ETFs like XLC and VOX, further enhancing market vitality.
- Upsized Offering: Uniti Group increased its senior notes offering from $500 million to $1 billion, reflecting strong market demand for its financing needs, which is expected to enhance the company's liquidity and financial flexibility.
- Interest Rate Setting: The notes carry an interest rate of 8.625% and are priced at 100.25%, indicating high investor demand for this debt instrument, which may impact the company's cost of capital.
- Clear Use of Proceeds: The net proceeds will be used to repay Uniti Services' senior secured first lien term loan due 2031, cover related fees, and allocate remaining funds for general corporate purposes, ensuring the robustness of the company's financial structure.
- Expected Closing Date: The offering is anticipated to close on February 4, 2026, marking an active positioning of the company in the capital markets, which supports its future strategic development.








