October 4 2016
Windstream Holdings, a communications company formed in 2006 by the merger of Alltell and Valor Communications, acquired 9 companies within 8 years.
This rapid growth led to a substantial rise in debt which, together with increasing competition from other telecommunications companies, impacted their ability to service their obligations.
It became apparent that something significant had to be done.
In April 2015 Windstream Holdings announced that it successfully completed the tax-free spinoff of select telecommunications network assets into Communications Sales and Leasing, Inc. (NASDAQ: CSAL).
"This innovative transaction has made Windstream a stronger company with less debt and increased capacity to invest in our network to provide advanced communication services to customers. I'm also excited about the growth prospects of CS&L." said Tony Thomas, president and chief executive officer of Windstream.
Communications Sales & Leasing is a real estate investment trust (REIT) engaged in the acquisition and construction of mission critical communications infrastructure.
Although CS&L’s business primarily consists of the Windstream agreement, the company expects to generate additional revenue through subsequent telecommunication network leases with other carriers and additional business with Windstream.
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