Uniti raises AUD 270mn to fund OptiComm deal

Uniti Group has secured up to AUD 270.00 million (USD 184.97 million) in an institutional entitlement offer to partly fund the acquisition of Australian communications company OptiComm.

The company has successfully raised AUD 152.00 million at AUD 1.40 per share in a bookbuilding process supported by institutional stockholders.

In addition, Uniti has also entered into a retail component entitlement offer that has been fully underwritten and will allow investors to buy shares at the same price as the institutional groups to fetch a further AUD 118.00 million.

This tranche of the total funding will open on 22nd June 2020 and close on 6th July 2020.

Eligible retail shareholders will be those registered addresses in Australia and New Zealand.

The Australian Financial Review reported that Bank of America, Goldman Sachs and Merrill Lynch Equities are underwriters and lead managers on the deal.

Proceeds will be used to partly fund the AUD 532.00 million acquisition of OptiComm.

Uniti last fetched AUD 42.00 million via a rights issue in December, which followed an AUD 43.00 million raise three weeks earlier.

The company is an internally managed real estate investment trust, engaged in the acquisition and construction of mission critical communications infrastructure.

Uniti is also providing wireless services to the sector and as of 31st March 2020, it has 6.30 million fibre strand miles, 700 wireless towers and other communications real estate throughout the US.

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Earlier this month, the group sold its US telecommunications infrastructure group to Melody Investment Advisors for USD 220.00 million.

In the three months to 31st March 2020, Uniti posted revenue of USD 266.16 million, up 2.0 per cent from USD 261.03 million in the corresponding period of 2019.

Adjusted earnings before interest, taxes, depreciation and amortisation rose slightly to USD 201.71 million in Q1 2020 (Q1 2019: USD 200.28 million).

© Zephus Ltd

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