Uniti Group $300 million convertible senior notes and capped call transactions

Davis Polk advised Uniti Group Inc. in connection with a Rule 144A offering of $300 million aggregate principal amount of 7.50% convertible senior notes due 2027. In connection with the notes offering, Uniti Group entered into capped call transactions with certain financial institutions, including one or more of the initial purchasers and/or their respective affiliates. 

Uniti Group will use the net proceeds of the offering to repurchase a portion of the outstanding principal amount of existing 4.00% exchangeable senior notes due 2024 and to pay the cost of the capped call transactions described above. The remaining net proceeds will be used for general corporate purposes, which may include the repurchase or repayment of other outstanding debt, including additional open market repurchases, redemptions or tender offers of the existing exchangeable notes.

Uniti Group, an internally managed real estate investment trust, is engaged in the acquisition and construction of mission critical communications infrastructure and is a leading provider of fiber and other wireless solutions for the communications industry.

The Davis Polk corporate team included partner Michael Kaplan, counsel John H. Runne and associate Jordyn Giannone. The equity derivatives team included partner Mark J. DiFiore, associates Hanbing Zhang and Danielle Forni. The tax team included partners Michael Mollerus, Michael Farber and Patrick E. Sigmon and associate Yixuan Long. All members of the Davis Polk team are based in the New York office.