- Uniti and Windstream merge all existing debt under a single borrowing entity, removing older restrictions and simplifying governance.
- New Uniti issues preferred shares and warrants as part of a recapitalisation strategy, raising questions about future flexibility.
What happened: Uniti consolidates debt and restructures capital after merger
On 1 August 2025, Uniti completed its internal reorganisation tied to the merger with Windstream. Under the new structure, a wholly owned subsidiary of New Uniti merged with Uniti Group Inc., making the former Uniti, Windstream and their affiliates subsidiaries of New Uniti. The old Uniti borrowing entity was combined with Windstream Services LLC, consolidating all outstanding debt into one borrower.
This restructuring also involved aligning the company’s credit agreements, dissolving Windstream’s separate intercreditor and collateral frameworks. As a result, Uniti’s revolving credit facility is now treated equally with first lien debt. The company’s $306.5 million in convertible senior notes due 2027 remain active and are convertible into New Uniti shares. The new governance structure also blends legacy Uniti and Windstream directors.
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Why it’s important
By streamlining its capital structure, Uniti is aiming for improved financial clarity and operational flexibility. Combining borrowing entities could help reduce legal and compliance overheads while aligning financial reporting. The simplification of debt covenants could allow Uniti greater freedom in deploying capital across its infrastructure assets.
However, the reorganisation also introduces new financial pressure. The company issued $575 million in preferred stock with a cumulative dividend starting at 11% and increasing to 16% after six years. In addition, 17.6 million warrants were issued at a nominal strike price. These steps may support liquidity in the short term but could dilute shareholders and increase long-term obligations.
Whether Uniti’s new structure delivers the intended benefits will depend on its ability to manage cost pressures while navigating a competitive telecom landscape. Investors and analysts will closely watch whether the merged entity maintains flexibility and growth momentum.
