Windstream To Spin Off Assets Into Publicly Traded REIT
Windstream Holdings, Inc. (NASDAQ:WIN) is a provider of advanced network communications, including cloud computing and managed services, to business nationwide. Winstream’s shares soared 12.82 percent, hitting $11.88 (1:06PM EDT) after the company revealed to spin off certain telecommunications network assets into an independent, publicly traded real estate investment trust (REIT).
Source: Windstream Holdings, Inc.
According to the news, the transaction will help Windstream to “accelerate network investments, provide enhanced services to customers and maximize shareholder value.” Under the transaction, Windstream will spin off fiber and copper networks and other real estate. The spin off, thus, will enable the company to improve in financial flexibility by lowering debt by $3.2 billion and increase free cash flow to accelerate in other investments. Jeff Gardner, president and CEO of Windstream, commented “This transaction will make Windstream a more nimble competitor in today’s increasingly dynamic communications marketplace and accelerate our deployment of advanced communications services.”
Source: FINVIZ.com
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