Telecommunications services provider Windstream Holdings, Inc. (WIN) announced it has received all regulatory approvals from state public service commissions required for its planned real estate investment trust (REIT) spinoff, which will be named Communications Sales & Leasing, Inc. (CS&L).
Windstream earlier received a favorable private letter ruling from the Internal Revenue Service relating to the transaction.
The transaction is expected to close in the first half of 2015, pending the satisfaction of customary conditions, including the effectiveness of CS&L's Form 10 registration statement and final approval by Windstream's board of directors.
Windstream announced on July 29 plans to spin off certain telecommunications network assets into an independent publicly traded REIT in order to accelerate network investments, significantly reduce debt and maximize shareholder value.
Windstream will hold a special meeting of stockholders on February 20 in conjunction with the REIT spinoff to approve a 1-for-6 reverse stock split and an amendment to the certificate of incorporation for Windstream Corp., a subsidiary of Windstream Holdings, that will facilitate the conversion of Windstream Corp. into a limited liability company.
Windstream's Board of Directors unanimously recommends that stockholders vote "FOR" each of the two proposals.
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