Windstream, a leading provider of advanced network communications, this week announced plans to spin off its existing fiber and copper network and other fixed real estate assets to an independent and publicly traded real estate investment trust (REIT).
The transaction will enable Windstream to accelerate network investments, provide enhanced services to customers and maximize shareholder value, said Windstream. The tax-free separation will allow the REIT to expand its network and diversify its assets through acquisitions.
Windstream will reduce its debt by about $3.2 billion and will help produce about $115 million a year more in free cash flow to invest in broadband, the company said in a statement.
“This transaction will make Windstream a more nimble competitor in today’s increasingly dynamic communications marketplace and accelerate our deployment of advanced communications services. Additionally, the REIT will have geographically diverse, high-quality assets and sustainable cash flows with the ability to grow and diversify over time."
- Jeff Gardner, President and CEO, Windstream
