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Windstream -5.6% after noteholder claims default in spin-off deal

Published 09/26/2017, 11:14 AM
© Reuters.  Windstream -5.6% after noteholder claims default in spin-off deal
WINMQ
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  • Windstream Holdings (NASDAQ:WIN) is off 5.6% after receiving a notice of default from a large noteholder over transactions around the spin-off of its REIT unit Communications Sales & Leasing.
  • The notice -- from a holder claiming more than 25% of the 6.375% senior notes due 2023 (Bloomberg says that's Aurelius Capital Management) -- alleges that asset transfers and associated leases in April 2015 were essentially a sale-and-leaseback transaction.
  • That doesn't comply with the covenants covering sale and leaseback, the noteholder says.
  • Windstream denies that the transactions are a sale-leaseback.
  • Now read: Windstream And Uniti: When Financial Engineering Goes Wrong


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