“Windstream anticipates that the REIT will raise approximately $3.5 billion in new debt, which will be used to repay existing Windstream debt to effect the transaction. Windstream expects to retire approximately $3.2 billion of debt as part of the transaction, resulting in the company deleveraging to 3.3 times debt to adjusted operating income before depreciation and amortization immediately at closing. The company’s enhanced leverage profile and improved discretionary free cash flow will enable Windstream to invest more capital in strategic initiatives, better positioning Windstream for long-term growth,” said Windstream in the statement.
The Fidelity MSCI Telecommunication Services Index ETF (NYSEArca: FCOM), the newest member of the telecom ETF group, is higher by 3.5%. Windstream is that ETF’s eighth-largest holding with a weight of 2.83%.
FCOM debuted last October as part of Fidelity’s suite of 10 sector ETFs. The fund, which entered Tuesday with a 6.6% gain since its debut, had $65.6 million in assets under management at the end of June. [Fidelity ETFs Offer to Impressive Start]
iShares U.S. Telecommunications ETF
