Filed by Uniti Group Inc.

(Commission File No.: 001-36708)

Pursuant to Rule 425 of the Securities Act of 1933

and deemed filed pursuant to Rule 14a-12

of the Securities Exchange Act of 1934

 

Subject Company: Uniti Group Inc.

(Commission File No.: 001-36708)

 

 

 

 

 

  

On May 3, 2024, the following communication was made available to Uniti Group Inc.’s (“Uniti”) employees in connection with Uniti’s contemplated transaction (the "Transaction") with Windstream Holdings II, LLC (“Windstream”).

 

Congratulations, Team Uniti!

 

Today, we are excited to announce that Uniti has entered into an agreement to merge with Windstream, resulting in a stronger, more competitive, nationwide provider of fiber solutions for our entire combined customer base – enterprise, government and wholesale. Read Press Release

 

Merging with Windstream – an organization with solutions capabilities, industry expertise and culture that very closely match our own – demonstrates our constant commitment to expanding our network, enhancing our product portfolio and increasing customer happiness.

 

We’ve created some helpful FAQ’s below to use when responding to Uniti customer questions regarding the announcement. PLEASE NOTE: Any investor, analyst or media inquiries should be directed to Bill DiTullio (bill.ditullio@uniti.com)

 

and FGS Global (uniti@fgsglobal.com).

 

AT-A-GLANCE STATS & DETAILS
Combined network & customer base info:	•   Fiber route miles: 217K (excludes ~9k of overlapped route miles)   •   On-Net locations: 150K (on-net buildings connected to combined network)   •   Near-Net locations: ~600K (incl ~275K locations on Uniti network and ~325K locations on Wizard network within 2,000 ft)   •   Metro markets: ~300
Expected close date:	The transaction is estimated to close during the second half of 2025.
Company leadership:	Kenny Gunderman will lead the combined company as CEO;   Paul Bullington will serve as CFO. Certain key members of Windstream’s management team are expected to remain with the combined company as well.
Customer communication efforts:	Enterprise and Wholesale customers are being notified via email and / or phone.
Company name:	The combined organization will operate as “Uniti” and will trade under the stock symbol “UNIT”.
Company headquarters:	There will be no changes to our headquarters (Little Rock, AR).
FAQ’s
How does this announcement impact current Uniti customers?	•   Business As Usual: We are still very early in this process. For now, it’s business as usual with your customers, internal support teams and processes. As we work toward closing and then integration, you will be updated and informed of relevant changes, system or process enhancements and important milestones.   •   Customer Happiness: Our customers must remain the primary focus throughout the process. Continuing to deliver an exceptional customer experience – to both internal and external customers, whether Uniti or Windstream – requires being highly responsive, offering timely and meaningful communication, demonstrating ownership and accountability and providing knowledgeable support.   •   Expanded Network & Solutions Capabilities: Uniti’s newly expanded, national 217K+ mile fiber network will be available to an even broader customer base, with 150K+ on-net buildings across approximately 300 metro markets.

 

 

What should I tell customers if they ask about the announcement?	Advise customers that for now things are business as usual. Although we’ve entered into an agreement with Windstream, the two companies will continue to operate independently until the closing occurs.   The day-to-day Uniti contacts for customers will remain the same.   As we work through the integration, customers will be updated and informed of relevant changes and important milestones.   Our top priority remains serving customers to the best of our ability and we are committed to ensuring the closing and integration is as seamless as possible.
My customer has several locations, some are served by Windstream.   Who should they call if they need support (need new service, need to report a trouble ticket, etc.)?	Advise customers that for now things are business as usual.   For now, their day-to-day Uniti and Windstream contacts will remain the same, including account reps, billing support, trouble ticketing, NOC resources, etc.
Windstream offers consumer services. Will Uniti now offer consumer services?	For now, both companies will continue to offer the services in their current portfolios to their respective customer bases.   Any changes to solutions or product offerings will be communicated (internally and externally) well in advance of execution and will not occur prior to closing.
Will the existing network footprint of either company change?	Common to large-scale mergers, this proposed transaction is in the very early phases and any impact to facilities has not yet been determined.   Bringing our two companies together is about growth. We expect customers to benefit from an expanded network and more integrated services that will deliver faster speeds at competitive prices.
I got a call from the media, where should I direct them?	Advise all media to send questions to Bill DiTullio (bill.ditullio@uniti.com) and FGS Global (uniti@fgsglobal.com)

 

 

 

No Offer or Solicitation

 

This communication and the information contained in it are provided for information purposes only and are not intended to be and shall not constitute a solicitation of any vote or approval, or an offer to sell or solicitation of an offer to buy, or an invitation or recommendation to subscribe for, acquire or buy securities of Uniti, Windstream or the proposed combined company (“New Uniti”) or any other financial products or securities, in any place or jurisdiction, nor shall there be any offer, solicitation or sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offer of securities shall be made in the United States absent registration under the U.S. Securities Act of 1933, as amended (the “Securities Act”), or pursuant to an exemption from, or in a transaction not subject to, such registration requirements.

 

Additional Information and Where to Find It

 

Uniti and Windstream plan to file relevant materials with the Securities and Exchange Commission (the “SEC”) in connection with the contemplated Transaction, including a registration statement on Form S-4 with the SEC that contains a proxy statement/prospectus and other documents. Uniti will mail the proxy statement/prospectus contained in the Form S-4 to its stockholders. This communication is not a substitute for any registration statement, proxy statement/prospectus or other documents that may be filed with the SEC in connection with the Transaction.

 

THE PROXY STATEMENT/PROSPECTUS AND OTHER DOCUMENTS FILED WITH THE SEC IN CONNECTION WITH THE TRANSACTION WILL CONTAIN IMPORTANT INFORMATION ABOUT UNITI, WINDSTREAM, NEW UNITI, THE TRANSACTION AND RELATED MATTERS. INVESTORS SHOULD READ THE PROXY STATEMENT/PROSPECTUS AND SUCH OTHER DOCUMENTS FILED WITH THE SEC CAREFULLY AND IN THEIR ENTIRETY, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THE PROXY STATEMENT/PROSPECTUS AND SUCH DOCUMENTS, BEFORE THEY MAKE ANY DECISION WITH RESPECT TO THE TRANSACTION. The proxy statement/prospectus, any amendments or supplements thereto and all other documents filed with the SEC in connection with the Transaction will be available when filed free of charge on the SEC’s website (at www.sec.gov). Copies of documents filed with the SEC by Uniti will be made available free of charge on Uniti's investor relations website (at https://investor.uniti.com/financial-information/sec-filings).

 

Participants in the Solicitation

 

Uniti, Windstream and their respective directors and certain of their executive officers and other employees may be deemed to be participants in the solicitation of proxies from Uniti’s stockholders in connection with the Transaction. Information about Uniti’s directors and executive officers is set forth in the sections titled “Proposal No. 1 Election of Directors” and “Security Ownership of Certain Beneficial Owners and Management” included in Uniti’s proxy statement for its 2024 annual meeting of stockholders, which was filed with the SEC on April 11, 2024 (and which is available at https://www.sec.gov/Archives/edgar/data/1620280/000110465924046100/0001104659-24-046100-index.htm), the section titled “Directors, Executive Officers and Corporate Governance” included in its Annual Report on Form 10-K for the fiscal year ended December 31, 2023, which was filed with the SEC on February 29, 2024 (and which is available at https://www.sec.gov/ix?doc=/Archives/edgar/data/1620280/000162828024008054/unit-20231231.htm), and subsequent statements of beneficial ownership on file with the SEC and other filings made from time to time with the SEC. Additional information regarding the persons who may, under the rules of the SEC, be deemed participants in the solicitation of Uniti stockholders in connection with the Transaction, including a description of their direct or indirect interests, by security holdings or otherwise, will be set forth in the proxy statement/prospectus and other relevant materials when they are filed with the SEC. These documents can be obtained free of charge from the sources indicated above.

 

Forward-Looking Statements

 

This communication contains forward-looking statements, including within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can often be identified by terms such as “may,” “will,” “appears,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential,” or “continue,” or the negative of these words or other similar terms or expressions that concern expectations, strategy, plans, or intentions. However, the absence of these words or similar terms does not mean that a statement is not forward-looking. All forward-looking statements are based on information and estimates available to Uniti and Windstream at the time of this communication and are not guarantees of future performance.

 

Examples of forward-looking statements in this communication (made at the date of this communication unless otherwise indicated) include, among others, statements regarding our merger with Windstream and the future performance of New Uniti (together with Windstream and Uniti, the “Merged Group”), the perceived and potential synergies and other benefits of the Transaction, and expectations around the financial impact of the Transaction on the Merged Group’s financials. In addition, this communication contains statements concerning the intentions, beliefs and expectations, plans, strategies and objectives of the directors and management of Uniti and Windstream for Uniti and Windstream, respectively, and the Merged Group, the anticipated timing for and outcome and effects of the Transaction (including expected benefits to shareholders of Uniti), expectations for the ongoing development and growth potential of the Merged Group and the future operation of Uniti, Windstream and the Merged Group.

 

These statements involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from any results, levels of activity, performance or achievements expressed or implied by any forward-looking statement and may include statements regarding the expected timing and structure of the Transaction; the ability of the parties to complete the Transaction considering the various closing conditions; the expected benefits of the Transaction, such as improved operations, enhanced revenues and cash flow, synergies, growth potential, market profile, business plans, expanded portfolio and financial strength; the competitive ability and position of New Uniti following completion of the Transaction; and anticipated growth strategies and anticipated trends in Uniti’s, Windstream’s and, following the expected completion of the Transaction, New Uniti’s business.

 

In addition, other factors related to the Transaction that contribute to the uncertain nature of the forward-looking statements and that could cause actual results and financial condition to differ materially from those expressed or implied include, but are not limited to: the satisfaction of the conditions precedent to the consummation of the Transaction, including, without limitation, the receipt of shareholder and regulatory approvals on the terms desired or anticipated; unanticipated difficulties or expenditures relating to the Transaction, including, without limitation, difficulties that result in the failure to realize expected synergies, efficiencies and cost savings from the Transaction within the expected time period (if at all); potential difficulties in Uniti’s and Windstream’s ability to retain employees as a result of the announcement and pendency of the Transaction; risks relating to the value of New Uniti’s securities to be issued in the Transaction; disruptions of Uniti’s and Windstream’s current plans, operations and relationships with customers caused by the announcement and pendency of the Transaction; legal proceedings that may be instituted against Uniti or Windstream following announcement of the Transaction; funding requirements; regulatory restrictions (including changes in regulatory restrictions or regulatory policy) and risks associated with general economic conditions.

 

Additional factors that could cause actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by the forward-looking statements are detailed in the filings with the SEC, including Uniti’s annual report on Form 10-K, periodic quarterly reports on Form 10-Q, periodic current reports on Form 8-K and other documents filed with the SEC.

 

There can be no assurance that the Transaction will be implemented or that plans of the respective directors and management of Uniti and Windstream for the Merged Group will proceed as currently expected or will ultimately be successful. Investors are strongly cautioned not to place undue reliance on forward-looking statements, including in respect of the financial or operating outlook for Uniti, Windstream or the Merged Group (including the realization of any expected synergies).

 

Except as required by applicable law, Uniti does not assume any obligation to, and expressly disclaims any duty to, provide any additional or updated information or to update any forward-looking statements, whether as a result of new information, future events or results, or otherwise. Nothing in this communication will, under any circumstances (including by reason of this communication remaining available and not being superseded or replaced by any other presentation or publication with respect to Uniti, Windstream or the Merged Group, or the subject matter of this communication), create an implication that there has been no change in the affairs of Uniti or Windstream since the date of this communication.