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.

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Comments (4)
  • GLV
    , contributor
    Comments (47) | Send Message
    Dividend decrease in disguise?
    29 Jul 2014, 09:10 AM Reply Like
  • w.sak
    , contributor
    Comments (180) | Send Message
    nice share lift
    29 Jul 2014, 10:44 AM Reply Like
  • RoseNose
    , contributor
    Comments (10197) | Send Message
    29 Jul 2014, 12:02 PM Reply Like
  • FinancialDave
    , contributor
    Comments (2223) | 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
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