09:39 AM EDT, 05/03/2024 (MT Newswires) -- (Updates with details throughout.)

Uniti Group ( UNIT ) said Friday that it has agreed to merge with Windstream Holdings II.

Under the terms of the deal, Uniti shareholders will receive approximately 62% of the outstanding common equity of the combined company, while Windstream shareholders will receive $425 million of cash, $575 million of preferred equity in the new combined company, and the remaining 38% of the merged company's shares.

Windstream shareholders will also receive non-voting warrants to acquire up to 6.9% of common shares of the combined company. Uniti said it will fund the $425 million from operations, revolver borrowings, and/or future capital markets transactions.

When the merger closes, which is expected in H2 of 2025, the combined company will be led by Uniti Chief Executive Kenny Gunderman and Chief Financial Officer Paul Bullington. Certain members of Windstream's management team are expected to remain.

The combined company will continue to operate as Uniti under the ticker symbol UNIT and be based in Little Rock, Arkansas.

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