Uniti Group (UNIT) Prices $960.1M Fiber Network Revenue Notes Offering
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: seekingalpha
- Bond Offering Size: Uniti Group's subsidiary Kinetic ABS Issuer successfully priced a $960.1 million fiber network revenue notes offering, including $677.71 million of 5.219% Class A-2 notes, reflecting market confidence in its assets.
- Interest Rates and Maturity: The notes have a weighted average coupon rate of approximately 5.689% and are expected to mature in February 2031, indicating effective strategies in managing financing costs.
- Asset Backing: The notes will be secured by residential fiber network assets and related customer agreements in Arkansas, Georgia, Kentucky, Ohio, and Texas, enhancing investor security.
- Planned Use of Proceeds: Uniti intends to use the net proceeds from the notes for general corporate purposes, including success-based capital expenditures and repayment of outstanding debt, aiming to enhance financial flexibility and long-term growth potential.
Analyst Views on UNIT
Wall Street analysts forecast UNIT stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for UNIT is 6.60 USD with a low forecast of 6.00 USD and a high forecast of 8.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
5 Analyst Rating
1 Buy
3 Hold
1 Sell
Hold
Current: 7.750
Low
6.00
Averages
6.60
High
8.00
Current: 7.750
Low
6.00
Averages
6.60
High
8.00
About UNIT
Uniti Group Inc. is a premier insurgent fiber provider dedicated to enabling mission-critical connectivity across the United States. It offers advanced communications services, including fiber-based broadband to residential and business customers, managed cloud communications and security services for enterprises and government entities and tailored wave and transport solutions for carriers, content providers and large cloud computing and storage service providers. Its segments include Kinetic, Uniti Solutions, and Fiber Infrastructure. Kinetic segment offers local and long-distance voice services and Web conferencing products. Uniti Solutions segment includes software solutions and network connectivity. Fiber Infrastructure segment offers network bandwidth to other telecommunications carriers, network operators, content providers and storage service providers. Its portfolio of services is offered through a suite of brands: Uniti Wholesale, Kinetic, Uniti Fiber, and Uniti Solutions.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
