Uniti amends credit agreement to increase commitments, extend maturity

By Taylor Fox

New York, Dec. 10 – Uniti Group Inc. subsidiaries Uniti Group LP, Uniti Group Finance 2019 Inc. and CSL Capital, LLC entered into a seventh amendment to its credit agreement dated April 24, 2015, according to an 8-K filing with the Securities and Exchange Commission.

The amendment increases commitments from new and existing lenders under the revolving credit facility to $500 million and, subject to some conditions, extends the maturity date of those commitments to Dec. 10, 2024.

As amended, the revolver provides that upon receipt of routine regulatory approvals, new and extended commitments will bear interest at Libor plus 375 to 450 basis points, depending on the company’s secured leverage ratio, subject to 0% Libor floor.

In addition, limitations that were included in previous amendments to the credit agreement have been modified or removed, including restrictions relating to debt incurrence, restricted payments and permitted investments.

The revolver will be subject to an earlier maturity date of 91 days prior to the maturity of any outstanding debt with a principal amount of at least $200 million, unless the company’s unrestricted cash balance plus remaining revolver commitments exceeds the principal amount of that debt at all times following that 91st day until the maturity of that debt.

Some non-extending lender commitments of $60 million will mature on April 24, 2022 and will continue to bear interest at rates previously in effect.

Prior to the expiration of these commitments, the size of the revolving credit facility will be $560 million from all lenders.

Bank of America, NA is the administrative agent, collateral agent, swing line lender and a letter-of-credit issuer.

Uniti is a Little Rock, Ark.-based communication infrastructure group.

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