Uniti tumbles on convertible debt deal plans

Uniti (Delaware)

07/12/2022 15:25

** Uniti Group Inc's shares  UNIT.O  tumble 14.1% to $6.06,
lowest since Apr 2020, as co looks to raise capital
    ** UNIT on course for biggest one-day decline since Mar 2020
    ** Telecom/broadband infrastructure REIT offering $300 mln
5-yr convertible bonds (CBs)  urn:newsml:reuters.com:*:nGNX5Hlxjq
    ** Co intends to use portion of net offering proceeds to
repurchase portion of subsidiary Uniti Fiber's existing 4% CBs
due 2024, rest for general purposes
    ** UNIT had ~$1.7 bln market cap as of Tues close, per
Refinitiv data
    ** With drop on Weds, shares down 57% YTD
    ** Avg rating among 9 analysts is "hold"; median PT of $9
down from $11 a month ago, per Refintiv
 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-332-219-1430))