Windstream announced on Monday, March 9 that it entered into an amendment to its previously announced Plan Support Agreement (the “Amended PSA”) expanding the scope of participants who may participate in the “priority” tranche of the rights offering by becoming parties to the Amended PSA and supporting the Company’s restructuring process.
The previously announced participation cap of $430 million in the priority tranche has been increased to allow additional interested holders to participate in the priority tranche on a pro rata basis. Holders of an additional $667 million of first lien claims signed up to the Amended PSA and may participate in the priority tranche. This brings the total percentage of Windstream’s first lien holders supporting the Amended PSA to 94%, along with over 54% of the second lien noteholders.
Additionally, today Windstream announced that it entered into a second amendment to the Plan Support Agreement adding 72% of the Midwest Noteholders as additional parties who support Windstream’s chapter 11 plan process and the contemplated restructuring transactions. Under the Plan, every Midwest Noteholder shall receive its pro rata share of the Midwest Notes Exit Facility Term Loans, the principal amount of which shall in no event exceed $100 million, plus any interest and fees due and owing under the governing indenture for the Midwest Notes and/or the Final DIP Order to the extent unpaid as of the Plan Effective Date.
As previously announced, Windstream intends to file its chapter 11 plan of reorganization, with its proposed new capital structure, with the court for approval as soon as possible with a target of by the end of March. The company expects to emerge from restructuring mid-year, subject to timing of court and regulatory approvals.
Windstream voluntarily filed for Chapter 11 reorganization in the U.S. Bankruptcy Court for the Southern District of New York on Feb. 25, 2019. Windstream is continuing to operate in the normal course during the financial restructuring process.
This release is for informational purposes only and is not an offer to sell or buy, or the solicitation of an offer to buy or sell, any securities. Any offer, issuance or sale of securities under the plan of reorganization may not be registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States without registration or an applicable exemption from the registration requirements.
About Windstream
Windstream Holdings, Inc., a FORTUNE 500 company, is a leading provider of advanced network communications and technology solutions. Windstream provides data networking, core transport, security, unified communications and managed services to mid-market, enterprise and wholesale customers across the U.S. The company also offers broadband, entertainment and security services for consumers and small and medium-sized businesses primarily in rural areas in 18 states. Services are delivered over multiple network platforms including a nationwide IP network, our proprietary cloud core architecture and on a local and long-haul fiber network spanning approximately 150,000 miles. Additional information is available at windstream.com or windstreamenterprise.com. Please visit our newsroom at news.windstream.com or follow us on Twitter at @Windstream.
Cautionary Statement Regarding Forward Looking Statements
This release may contain “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts that address activities, events or developments that we expect, believe or anticipate will or may occur in the future are forward-looking statements. These statements are based on certain assumptions based on management’s views, estimates, beliefs as of the time these statements regarding future events and results. When used in this release, words such as “will,” “potential,” “believe,” “estimate,” “intend,” “expect,” “may,” “should,” “anticipate,” “could,” “plan,” “predict,” “strategy,” “future” or their negatives or other words that convey the uncertainty of future events or outcomes, are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Forward-looking statements involve uncertainties and are subject to many risks and variables. Actual future events may differ materially from those expressed in these forward-looking statements as a result of a number of factors related to our chapter 11 cases, which are set forth in our risk factors described in our Annual Report on Form 10-K and First Quarterly Report on Form 10-Q filed in 2019 available at the SEC’s website at www.sec.gov. Although we believe our forward-looking statements are based on reasonable assumptions, no assurance can be given that these assumptions are accurate or that any of these expectations will be achieved (partially or in full) or will prove to have been correct. In light of the above, the events anticipated by our forward-looking statements may not occur, and, if any of such events do, we may not have correctly anticipated timing or the extent of their impact. Any forward-looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law. These cautionary statements qualify all forward-looking statements attributable to us or persons acting on our behalf.
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