Uniti Plans Bond Sale to Cut Debt Costs, Windstream Burden

Uniti Group Inc. plans to sell $700 million of bonds to refinance debt and prepay some of what it owes to Windstream Holdings Inc., its largest customer.

Proceeds from the telecom company’s new unsecured notes due 2030 will redeem $600 million of 7.125% debt maturing in 2024, according to a statement. Any remaining cash will prepay some of the $490 million it owes to Windstream as part of a settlement reached during Windstream’s bankruptcy proceeding last year.

Initial price discussion on the notes is for a coupon around 6%, according to people with knowledge of the matter, who ...