Uniti Group Inc. Announces Launch of Kinetic Fiber Securitization Notes Offering

Uniti Group (Nasdaq: UNIT) announced that Kinetic ABS Issuer LLC commenced an offering of $960,100,000 aggregate principal amount of secured fiber network revenue term notes, with an anticipated repayment date in February 2031.

Rhea-AI Summary

Uniti Group (Nasdaq: UNIT) announced that Kinetic ABS Issuer LLC commenced an offering of $960,100,000 aggregate principal amount of secured fiber network revenue term notes, with an anticipated repayment date in February 2031. The Notes are expected to be secured by residential fiber assets and customer agreements in Arkansas, Georgia, Kentucky, Ohio and Texas. The Issuer expects a $150,000,000 variable funding note facility and a liquidity funding note facility governed by the same indenture. Uniti intends to use net proceeds for general corporate purposes, potentially including success-based capex and debt repayment. The Notes will be offered to qualified institutional buyers under Rule 144A and outside the U.S. under Regulation S, and will not be registered under the Securities Act.

Positive

• Secured notes offering of $960,100,000 announced
• Anticipated repayment date of February 2031 provides defined maturity
• Notes secured by fiber assets in five states (AR, GA, KY, OH, TX)
• Issuer plans $150,000,000 variable funding note facility

Negative

• Issuance creates additional secured obligations totaling $960,100,000
• Issuer and parent designated as unrestricted subsidiaries under Uniti credit agreement
• Notes are unregistered and limited to QIBs and Reg S investors, reducing liquidity

Argus Jan 8 session

-1.48% close to close Open Argus

Details

News Market Reaction – UNIT

On Jan 8, the day this news came out, UNIT closed 1.48% below the previous close.

Data tracked by StockTitan Argus for the Jan 8 session.

Key Figures

Kinetic notes size: $960,100,000 Variable funding facility: $150,000,000 Anticipated repayment date: February 2031

Kinetic notes size

$960,100,000

Aggregate principal of secured fiber network revenue term notes

Variable funding facility

$150,000,000

Expected variable funding note facility with delayed commitment availability

Anticipated repayment date

February 2031

Expected repayment date for the secured fiber network revenue term notes

Historical Context

5 past events · Latest: Dec 22

5 events

1. Dec 22

   Community initiative

   24h Move

   +1.4%

   Launch of 2025 Kinetic Kindness nationwide holiday giving campaign.

2. Dec 02

   Conference appearance

   24h Move

   +0.6%

   Participation at Raymond James 2025 TMT and Consumer Conference.

3. Nov 25

   Operational milestone

   24h Move

   +5.2%

   Kinetic surpasses 25,000 fiber homes passed in Broken Arrow.

4. Nov 18

   Conference appearance

   24h Move

   -3.1%

   BofA Securities 2025 Leveraged Finance Conference presentation.

5. Nov 11

   Conference appearance

   24h Move

   +4.6%

   Wells Fargo 9th Annual TMT Summit presentation announcement.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

securitization, variable funding note facility, liquidity reserve, indenture, +3 more

7 terms

securitization financial

"Announces Launch of Kinetic Fiber Securitization Notes Offering"

Securitization is when a bank or company takes a bunch of loans or assets, like mortgages or car loans, and bundles them together into a single package. They then sell pieces of this package to investors, who receive regular payments from the borrowers. This process helps the original lender get money quickly and spreads the risk among many investors.

variable funding note facility financial

"expects to enter into a $150,000,000 variable funding note facility"

A variable funding note facility is a revolving short-term borrowing arrangement that lets a company issue and repay short-term promissory notes on demand, often supported by a committed lender or a pool of liquid assets. For investors, it is like the company’s credit card: it smooths cash flow and funds operations or maturing debt but creates rollover and liquidity risk if market access or the backstop disappears, and costs can rise quickly when credit conditions tighten.

liquidity reserve financial

"may be drawn solely to support the transaction’s liquidity reserve"

Cash or assets that a company or fund keeps on hand that can be quickly turned into cash to pay bills, cover unexpected costs, or take advantage of opportunities. Think of it as a business’s emergency fund: it reduces the risk of running short of money, helps meet investor redemptions or debt payments, and signals financial stability—important signals for investors judging short-term safety and solvency.

indenture financial

"will be governed by the same indenture that will govern the Notes"

An indenture is a legal agreement between a company that borrows money by issuing bonds and the people who buy those bonds. It explains the rules the company must follow, like paying back the money and keeping certain financial promises. This document helps both sides understand their rights and responsibilities.

Rule 144A regulatory

"buyers under Rule 144A under the Securities Act and outside the United States"

Rule 144A is a regulation that makes it easier for companies to sell private bonds to large investors without going through all the usual rules that apply to public sales. It matters because it helps companies raise money more quickly and privately, often attracting big investors looking for special deals.

Regulation S regulatory

"and outside the United States in compliance with Regulation S under the Securities Act"

Regulation S is a set of rules that allows companies to sell securities (like shares or bonds) to investors outside the United States without having to follow all U.S. securities laws. It matters because it makes it easier for companies to raise money from international investors while still complying with U.S. regulations.

qualified institutional buyers financial

"offered only to persons reasonably believed to be qualified institutional buyers"

Qualified institutional buyers are large organizations, like big investment firms or banks, that are allowed to buy certain types of investment opportunities not available to everyday investors. Their size and experience matter because it ensures they understand and can handle complex financial deals, making markets more efficient and secure.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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LITTLE ROCK, Ark., Jan. 08, 2026 (GLOBE NEWSWIRE) -- Uniti Group Inc. (the “Company,” “Uniti,” or “we”) (Nasdaq: UNIT) today announced that Kinetic ABS Issuer LLC, a limited-purpose, bankruptcy remote subsidiary of Uniti (the “Issuer”), has commenced an offering of $960,100,000 aggregate principal amount of secured fiber network revenue term notes (the “Notes”), the issuance and sale of which are subject to market conditions and other factors. The Notes are expected to have an anticipated repayment date in February 2031. The Notes are expected to be secured by certain residential fiber network assets and related customer agreements in the States of Arkansas, Georgia, Kentucky, Ohio and Texas. Each of the Issuer and its direct parent entity and subsidiaries will be designated as “unrestricted subsidiaries” under Uniti’s credit agreement and the indentures governing its outstanding senior notes.

In connection with the offering of the Notes, the Issuer expects to enter into a $150,000,000 variable funding note facility with a delayed commitment availability feature, subject to the satisfaction of leverage tests and other customary availability/drawing conditions. The Issuer also expects to enter into a liquidity funding note facility, which may be drawn solely to support the transaction’s liquidity reserve and to cover specified payment shortfalls. The variable funding notes and the liquidity funding notes will be governed by the same indenture that will govern the Notes.

Uniti intends to use the net proceeds of the offering of the Notes for general corporate purposes, which may include success-based capital expenditures and/or repayment of outstanding debt.

The Notes will not be registered under the Securities Act of 1933, as amended (the “Securities Act”), or any state securities laws, and may not be offered or sold in the United States absent registration or an applicable exemption from registration under the Securities Act or any applicable state securities laws. The Notes will be offered only to persons reasonably believed to be qualified institutional buyers under Rule 144A under the Securities Act and outside the United States in compliance with Regulation S under the Securities Act.

This press release does not constitute an offer to sell, or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

ABOUT UNITI

Uniti is a premier insurgent fiber provider dedicated to enabling mission-critical connectivity across the United States. We build, operate, and deliver fast and reliable communications services, empowering more than a million consumers and businesses in the digital economy. Our broad portfolio of services is offered through a suite of brands: Uniti Wholesale, Kinetic, Uniti Fiber, and Uniti Solutions.

FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on assumptions with respect to the future and management’s current expectations, involve certain risks and uncertainties, and are not guarantees. These forward-looking statements include, but are not limited to, statements regarding the proposed offering of the Notes and use of proceeds therefrom. The words “anticipates,” “believes,” “could,” “estimates,” “expects,” “intends,” “may,” “plans,” “projects,” “will,” “would,” “predicts” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. The Company may not actually achieve the plans, intentions or expectations disclosed in its forward-looking statements, and you should not place undue reliance on the forward-looking statements. Future results may differ materially from the plans, intentions and expectations disclosed in the forward-looking statements that the Company makes. These forward-looking statements involve risks and uncertainties, known and unknown, that could cause events and results to differ materially from those in the forward-looking statements, including, without limitation: the levels of demand for our residential fiber network services within the markets related to the Notes, general market conditions within such markets, our ability to maintain and grow our residential fiber network services within these markets, unanticipated difficulties or expenditures relating to the merger of Uniti and Windstream; competition and overbuilding in consumer service areas and general competition in business markets; risks related to Uniti’s indebtedness, which could reduce funds available for business purposes and operational flexibility; rapid changes in technology, which could affect its ability to compete; risks relating to information technology system failures, network disruptions, and failure to protect, loss of, or unauthorized access to, or release of, data; risks related to various forms of regulation from the Federal Communications Commission, state regulatory commissions and other government entities and effects of unfavorable legal proceedings, government investigations, and complex and changing laws; risks inherent in the communications industry and associated with general economic conditions; and additional risks set forth in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of Uniti and its predecessor’s most recently filed periodic reports on Form 10-K and Form 10-Q and subsequent filings with the U.S. Securities and Exchange Commission as well as Uniti’s predecessor’s registration statement on Form S-4 dated February 12, 2025. The discussion of such risks is not an indication that any such risks have occurred at the time of this filing. The Company does not assume any obligation to update any forward-looking statements. Uniti expressly disclaims any obligation to release publicly any updates or revisions to any of the forward-looking statements set forth in this press release to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based.

INVESTOR CONTACTS:

Paul Bullington, 251-662-1512
Senior Executive Vice President, Chief Financial Officer & Treasurer
paul.bullington@uniti.com

Bill DiTullio, 501-850-0872
Senior Vice President, Investor Relations & Treasury
bill.ditullio@uniti.com

MEDIA CONTACTS:

Scott L. Morris
Associate Director, Media & External Communications
501-580-4759
scott.l.morris@uniti.com 

Brandi Stafford
Vice President, Corporate Communications
501-351-0067
brandi.stafford@uniti.com

This press release was published by a CLEAR® Verified individual.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What size of securitization offering did Uniti (UNIT) announce on January 8, 2026?

Uniti announced an offering of $960,100,000 aggregate principal amount of secured fiber network revenue term notes.

When is the anticipated repayment date for Uniti's (UNIT) Kinetic fiber notes?

The notes have an anticipated repayment date in February 2031.

What assets will secure Uniti's (UNIT) $960.1M notes?

The notes are expected to be secured by residential fiber network assets and related customer agreements in Arkansas, Georgia, Kentucky, Ohio and Texas.

How will Uniti (UNIT) offer the Kinetic fiber notes to investors?

The notes will not be registered and will be offered to qualified institutional buyers under Rule 144A and to investors outside the U.S. under Regulation S.

What additional funding facilities are planned alongside Uniti's (UNIT) note offering?

The Issuer expects a $150,000,000 variable funding note facility with delayed commitment and a liquidity funding note facility governed by the same indenture.

How does Uniti (UNIT) intend to use proceeds from the Kinetic fiber notes offering?

Uniti intends to use net proceeds for general corporate purposes, which may include success-based capital expenditures and repayment of outstanding debt.