Uniti Group Inc. Announces Pricing of $1.1 Billion Kinetic Fiber Securitization Notes Offering

Uniti Group (Nasdaq: UNIT) announced pricing of $1.14 billion Kinetic fiber securitization notes.

Rhea-AI Summary

Uniti Group (Nasdaq: UNIT) announced pricing of $1.14 billion Kinetic fiber securitization notes. The offering includes Class A-2, B and C term notes with coupons of 5.834%, 6.224% and 7.536%, a weighted average coupon of about 6.180%, and anticipated repayment in June 2033.

The notes will be secured by residential fiber network assets and related customer agreements across 10 U.S. states and are expected to close on July 15, 2026. Uniti plans to use net proceeds for general corporate purposes, including success-based capital expenditures and/or debt repayment.

Positive

• Kinetic fiber securitization totals approximately $1.14 billion in term notes
• Weighted average coupon of approximately 6.180% through anticipated June 2033 repayment
• Secured by residential fiber network assets and customer agreements in 10 U.S. states
• Planned use of proceeds includes success-based capital expenditures and/or debt repayment
• Liquidity funding note facility to be upsized and maturity aligned with notes

Negative

• Residential fiber network assets and related agreements will be pledged as collateral for the notes
• Notes are offered only to qualified institutional buyers and under Regulation S, limiting retail investor access

Argus Jun 8 session

-1.63% close to close Open Argus

Details

News Market Reaction – UNIT

On Jun 8, the first trading day after this news, UNIT closed 1.63% below the previous close.

Data tracked by StockTitan Argus for the Jun 8 session.

Key Figures

Aggregate principal amount: $1,140,710,000 Class A-2 notes: $805,210,000 at 5.834% Class B notes: $134,200,000 at 6.224% +5 more

Aggregate principal amount

$1,140,710,000

Secured fiber network revenue term notes

Class A-2 notes

$805,210,000 at 5.834%

Series 2026-2, anticipated repayment June 2033

Class B notes

$134,200,000 at 6.224%

Series 2026-2, anticipated repayment June 2033

Class C notes

$201,300,000 at 7.536%

Series 2026-2, anticipated repayment June 2033

Weighted avg coupon

6.180%

Collective coupon on the Notes

Expected closing date

July 15, 2026

Closing of the Notes offering

States securing assets

10 states

Residential fiber network assets and customer agreements

Series year

2026-2

All Note classes in this securitization

Previous Offering Reports

5 past events · Latest: Jun 01

Same Type 5 events

1. Jun 01

   Fiber notes launch

   24h Move

   -0.8%

   Announced launch of $1.14B secured fiber network revenue term notes.

2. Jan 30

   Securitization completion

   24h Move

   -2.6%

   Completed $960.1M inaugural fiber securitization with 2031 repayment date.

3. Jan 21

   Upsized senior notes

   24h Move

   -0.8%

   Priced upsized $1.0B 8.625% senior notes due 2032 under Rule 144A/Reg S.

4. Jan 15

   Securitization pricing

   24h Move

   +0.1%

   Priced $960.1M Kinetic fiber securitization with ~5.689% weighted coupon.

5. Jan 08

   Securitization launch

   24h Move

   -1.5%

   Launched $960.1M secured fiber term notes offering to institutional buyers.

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

Key Terms

securitization, bankruptcy remote, unrestricted subsidiaries, liquidity funding note facility, +3 more

7 terms

securitization financial

"announced that Kinetic ABS Issuer LLC...has priced its offering of $1,140,710,000 aggregate principal amount of secured fiber network revenue term notes"

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.

bankruptcy remote financial

"Kinetic ABS Issuer LLC, a limited-purpose, bankruptcy remote subsidiary of Uniti"

A “bankruptcy remote” structure is a legal setup that keeps certain assets or a subsidiary separate so they are unlikely to be dragged into a parent company’s bankruptcy. Think of it like placing valuables in a locked safe apart from the main house: if the house faces trouble, those assets are intended to stay protected, which matters to investors because it reduces the chance of losing value or cash flows tied to those isolated assets.

unrestricted subsidiaries financial

"designated as “unrestricted subsidiaries” under Uniti’s credit agreement and the indentures"

A company’s unrestricted subsidiaries are units that the parent treats as legally separate and does not bind to its debt covenants or other lender-imposed rules. Think of them as rooms in a house the owner can renovate or rent out without asking mortgage lenders; that freedom can let the parent pursue opportunities but can also shift risk away from creditors and change the parent’s reported leverage, so investors watch them for hidden liabilities and impacts on credit protection.

liquidity funding note facility financial

"increase the maximum commitment under its existing liquidity funding note facility"

A liquidity funding note facility is a pre-arranged line of short-term borrowing where a company issues notes (IOUs) to raise quick cash when needed, often backed by assets or a promise to repay. It acts like a corporate backup credit card that smooths day-to-day cash flow and supports operations during tight periods; investors watch it because reliance on this facility affects a company’s short-term solvency, interest costs, and credit risk.

Rule 144A regulatory

"qualified institutional buyers under Rule 144A under the Securities Act"

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

"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., June 05, 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 priced its offering of $1,140,710,000 aggregate principal amount of secured fiber network revenue term notes, consisting of $805,210,000 5.834% Series 2026-2, Class A-2 term notes, $134,200,000 6.224% Series 2026-2, Class B term notes and $201,300,000 7.536% Series 2026-2, Class C term notes, each with an anticipated repayment date in June 2033 (collectively, the “Notes”). Collectively, the Notes have a weighted average coupon rate of approximately 6.180%. The Notes are expected to be secured by certain residential fiber network assets and related customer agreements in the States of Texas, Arkansas, Kentucky, Ohio, Georgia, Iowa, Alabama, Florida, North Carolina and Oklahoma. Each of the Issuer and its direct parent entity and subsidiaries are designated as “unrestricted subsidiaries” under Uniti’s credit agreement and the indentures governing its outstanding senior notes. The offering is expected to close on July 15, 2026.

In connection with the closing of the offering of the Notes, the Issuer expects to (i) increase the maximum commitment under its existing liquidity funding note facility to reflect the increase in the transaction’s liquidity reserve requirements that would result from the issuance of the Notes and (ii) extend the maturity of the existing liquidity note facility to align with the final maturity date of 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 were 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 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’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. 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

FAQ

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

What did Uniti Group (Nasdaq: UNIT) announce about its 2026 Kinetic fiber securitization notes?

Uniti Group announced pricing of $1,140,710,000 secured fiber network revenue term notes through Kinetic ABS Issuer LLC. The notes are split into three series and are backed by residential fiber assets and related customer agreements across multiple U.S. states, according to the company.

What are the coupon rates and maturity for Uniti Group's 2026 Kinetic fiber notes (UNIT)?

The Kinetic fiber notes carry coupons of 5.834% for Class A-2, 6.224% for Class B, and 7.536% for Class C. According to Uniti, the notes have a weighted average coupon of about 6.180% and an anticipated repayment date in June 2033.

When is the expected closing date for Uniti Group's $1.14 billion Kinetic fiber securitization (UNIT)?

The offering of the Kinetic fiber securitization notes is expected to close on July 15, 2026. At closing, the issuer also plans to increase and extend its existing liquidity funding note facility to match the notes’ final maturity, according to Uniti.

How will Uniti Group use the proceeds from the Kinetic fiber securitization notes offering (UNIT)?

Uniti intends to use net proceeds for general corporate purposes, which may include success-based capital expenditures and repayment of outstanding debt. According to the company, final allocation between these uses has not been specified and may depend on corporate needs over time.

What assets secure Uniti Group's Kinetic fiber securitization notes issued in 2026 (UNIT)?

The Kinetic fiber securitization notes are expected to be secured by certain residential fiber network assets and related customer agreements. According to Uniti, these assets are located in Texas, Arkansas, Kentucky, Ohio, Georgia, Iowa, Alabama, Florida, North Carolina and Oklahoma.

Who can invest in Uniti Group's 2026 Kinetic fiber securitization notes (UNIT)?

The Kinetic fiber securitization notes are not registered under the Securities Act and are offered only to qualified institutional buyers under Rule 144A. According to Uniti, they are also offered outside the United States in compliance with Regulation S, restricting access for most retail investors.