Uniti Adding Midwest Fiber Network in 'OpCo-PropCo' Plan With Macquarie Infrastructure Partners
16 January 2019 - 10:25AM
Dow Jones News
By Josh Beckerman
Uniti Group Inc. (UNIT), a real estate investment trust focused
on communications assets, will buy the fiber network of Midwestern
telecom company Bluebird Network LLC.
In part of the so-called "OpCo-PropCo" partnership, Macquarie
Infrastructure Partners will buy Bluebird. Uniti will purchase
Bluebird's fiber network and lease it back to Bluebird.
Additionally, Uniti will sell Uniti Fiber's Midwestern
operations to MIP, retaining its existing Midwestern fiber
network.
The sale price for Bluebird's operations wasn't disclosed, but
Uniti is buying the fiber network for $319 million, including $175
million that Uniti is funding in cash and $144 million of prepaid
rent from MIP.
Uniti will also receive $37 million in upfront cash for the sale
of its Midwestern operations.
Separately, Uniti is in discussions for the potential sale of
its Latin America business, which includes about 500 towers in
Mexico, Colombia and Nicaragua.
Write to Josh Beckerman at josh.beckerman@wsj.com
(END) Dow Jones Newswires
January 15, 2019 18:10 ET (23:10 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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