Windstream Completes CS&L Spinoff

(RTTNews) - Windstream Holdings Inc. (WIN) said Friday that it has completed the tax-free spinoff of select telecommunications network assets into Communications Sales and Leasing, Inc., an independent publicly traded real estate investment trust.

In addition, Windstream also announced the near completion of a one-for-six reverse stock split of its shares.

Under the terms of the spinoff and reverse stock split, Windstream shareholders will receive one share of Communications Sales and Leasing for every five shares of Windstream held of record on April 10. An ex-date of April 27 has been established by Nasdaq, and therefore all trades through the close of business on April 24 carry the right to receive this distribution.

Following the distribution of Communications Sales and Leasing, Windstream will effect a one-for-six reverse stock split of Windstream common stock effective at 8:00 pm on April 26.

As of Friday, Communications Sales and Leasing is an independent, publicly-traded company that will begin trading on the Nasdaq stock exchange under the symbol "CSAL" on Monday, April 27. Windstream will continue to trade on the Nasdaq stock exchange under the symbol "WIN".

In connection with the spinoff, Windstream board member, Francis Frantz, is leaving Windstream's board and will serve as chairman of Communications Sales and Leasing's board.

Also in connection with the spinoff, Windstream repaid debt in an aggregate amount equal to $2.4 billion under its outstanding credit agreement. Windstream also received cash proceeds of $1.035 billion, which is anticipated to be used to retire additional debt over the next 30 days. In addition, as a part of the spinoff, Windstream will retain a 19.9% stake in Communications Sales and Leasing that will be used within the next 12 months to retire additional debt.

In July 2014, Windstream announced plans to spin off certain telecommunications network assets into an independent, publicly traded real estate investment trust.