Seeking Alpha

Windstream to spin off telecom assets into publicly traded REIT

  • Windstream (NASDAQ:WIN) +5.4% premarket on plans to spin off its fiber and copper networks, as well as other real estate, into a publicly traded REIT.
  • WIN's board of directors approve the plan following receipt of a favorable private letter ruling from the IRS; WIN says the tax-free separation will enable it to reduce debt by ~$3.2B and free up cash flow to invest in broadband.
  • The REIT will lease use of the assets to WIN with an initial estimated rent payment of $650M/year.
Comments (4)
  • GLV
    , contributor
    Comments (18) | Send Message
     
    Dividend decrease in disguise?
    29 Jul 2014, 09:10 AM Reply Like
  • w.sak
    , contributor
    Comments (134) | Send Message
     
    nice share lift
    29 Jul 2014, 10:44 AM Reply Like
  • rosenose
    , contributor
    Comments (2468) | Send Message
     
    Sell.
    29 Jul 2014, 12:02 PM Reply Like
  • FinancialDave
    , contributor
    Comments (511) | Send Message
     
    Curious to see where the dividend of the two parts go. I decided to wait it out, but booked some of the gains with a short call.
    29 Jul 2014, 05:43 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs