Fitch gives BB+ to Uniti notes

Fitch Ratings said it gave BB+/RR1 ratings to Uniti Group LP’s offering of $1.75 billion of senior secured notes due 2028. The issuer is a subsidiary of Uniti Group Inc. Uniti Fiber Holdings Inc., Uniti Group Finance 2019 Inc. and CSL Capital, LLC, are co-issuers of the notes.

The notes will be guaranteed on a senior unsecured basis by Uniti Group Inc. and on a senior secured basis by each of Uniti's subsidiaries, other than the issuers, that guarantees indebtedness under the senior secured credit facilities and outstanding secured notes, except initially those subsidiaries that require regulatory approval prior to guaranteeing the new notes.

The agency reviewed Uniti’s BB+ senior secured rating on Oct. 28 and took no action.

The proceeds are expected to be used to redeem a portion of its 7 7/8% senior secured notes due 2025, to repay $275 million of borrowings on the revolver, to pay related fees and expenses and for generate corporate purposes.

The outlook is stable.

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